In this expert article, My name is Patricia Guyomarc’h draws a grim conclusion: a large majority of judicial reorganisation proceedings fail and end in liquidation. One of the major obstacles to the survival of companies is the artificial inflation of liabilities when the plan is drawn up, particularly because of «forecast» debts whose amounts are sometimes ten times higher than reality.
To remedy this impasse, the lawyer proposes an innovative strategy: the multi-speed continuation plan«. The central idea is to adopt a preliminary plan based solely on undisputed final liabilities in order to immediately improve the company's cash flow. Uncertain or disputed debts are then deferred to later stages to be incorporated into the plan as they are verified.
This pragmatic approach transforms judicial reorganisation into a genuine Survival shield. By accelerating the company's takeover and focusing on actual repayment capabilities, Mr. Guyomarc'h demonstrates that it is possible to promote the sustainability of the business, maintain jobs and, ultimately, provide better overall protection for creditors.
