May 24, 2022

In Quimper, the commercial court calls on companies to anticipate the end of aid – Quimper

“The commercial court suffers from a criminal and repressive image: companies are reluctant to take the step,” analyzes Benoît Bataille, president of the Quimper commercial court. Organized behind closed doors this Wednesday, January 19, due to the pandemic, the solemn back-to-school hearing will mainly have taken the form of a strong signal sent to Cornish business leaders: “They come to court too late: that cannot lead only to a liquidation”, considers the judge Bataille.

Prevention: look the obstacle in the face to better overcome it

In the activity report drawn up on Wednesday, the figure reflecting the preventive action of the commercial court is considered “too low”. “We only had about thirty prevention appointments which resulted in eleven openings of conciliation. 70% of these have been successful”, explains the president of the commercial court before recalling that a safeguard plan can be studied with a spreading of all debts over ten years. “Ten years to breathe and succeed in a company turnaround. But it is a decision that the entrepreneur must take well in advance”.

Solemn back-to-school hearing of the Quimper Commercial Court, chaired by Benoît Bataille (fourth magistrate in the photo from the left). (The Telegram / Olivier Scaglia)

We are at the time when the social funds will wish to clarify their claims.

The time of creditors

The indicators provided through the activity report of the Quimper Commercial Court show that the economic year has not been catastrophic for Cornish companies. Mainly thanks to state aid and generally maintained consumer demand since the start of the pandemic in the spring of 2019. But the public money injected or not claimed will now have to go back to the various creditors. “We are at a time when the social security funds are going to want to clarify their claims,” underlines Benoît Bataille to make the link with the preventive action of business leaders that he calls for. “The benevolence of the State remains in order but companies must not be under any illusions, we will have to plan for this decline in liquidity”.

Recovery less tonic

The apostrophe of the magistrates of the Commercial Court towards business leaders is all the more pressing as their activity has been, in recent months, impacted by “problems of supply, by the disorganization of maritime freight resulting in an extension of delivery times, a surge in costs inducing an increase in the selling price to consumers”. A trend that should not change before the end of 2022 according to observers at the commercial court. The morale of business leaders would also be affected due to recurring recruitment difficulties in certain professions, to which is added absenteeism boosted by covid.

The preventive offer of the commercial courts to avoid liquidation
This jurisdiction is the only actor, in the crisis exit mechanism, “having binding power vis-à-vis third parties in order to facilitate the rescue of companies in difficulty”.
For a spreading of all debts over ten years, implementation of a backup plan.
Faced with over-indebtedness or a “difficult” creditor, appointment of a conciliator for a fair agreement under the seal of justice.
Faced with a suspension of payments, existence of a receivership procedure specific to the pandemic situation and called “flash”, aiming to be “lighter, faster and less restrictive”.
Faced with a situation of economic crisis for the company following the pandemic, “covid ordinances” allow the appointment of agents “who can act as a facilitator for emerging from the crisis”.
Quimper Commercial Court: tel. 02 98 55 42 47