What is a corporate safeguard plan?
The company safeguard plan is a procedure provided for in the French Commercial Code, enabling a company in difficulty in Toulon, but not yet in default of payment, to reorganize under the protection of the Commercial Court. The main aim is to ensure the continuation of the business, maintain employment and pay off liabilities.
The difference between sauvegarde and redressement judiciaire
Unlike receivership, which presupposes cessation of payments, the safeguard procedure is a preventive measure available to companies anticipating difficulties.
Objective: reorganize without liquidating
Safeguarding a business enables it to stay in business and avoid a more serious outcome, such as compulsory liquidation. It represents a real opportunity for the company to bounce back.
Who can request a safeguard procedure?
The sauvegarde d’entreprise procedure is open to any structure (SARL, SAS, sole proprietorship, artisan, merchant, liberal profession) encountering difficulties that it cannot overcome on its own.
Qualifying conditions
| Criteria | Description |
|---|---|
| Financial statement | Not be in suspension of payments at the time the application is submitted |
| Justification | Justify real, current or foreseeable difficulties |
| Viability | Demonstrate the feasibility of maintaining the business |
The role of the manager
The executive retains day-to-day management of the business, under the supervision of a court-appointed administrator. They must actively cooperate and follow the approved safeguard plan.
The stages of a safeguard procedure
1. Filing the application with the court
Our law firm specializing in business law in Toulon will help you prepare the safeguard application and file it with the Toulon Commercial Court.
2. Appointment of receiver
The court appoints an administrator to assist or supervise the management of the business during the proceedings.
3. Drawing up a backup plan
A plan is drawn up with our help, including reorganization measures and debt repayment.
4. Validation of the plan by the court
After consultation with the creditors and the administrator, the plan is validated by judgment.
5. Plan implementation and monitoring
We remain at your side throughout the implementation of the continuation plan, to ensure that it runs smoothly and to help you meet your commitments.
The benefits of a backup plan for your company
| Advantage | Profit |
|---|---|
| Legal protection | Protection from creditors for the duration of the proceedings |
| Continuity of activity | Maintaining business, contracts and employees |
| Image preservation | Preserving the company’s image with customers and partners |
| Early restructuring. | Anticipating restructuring without liquidation |
Why hire a lawyer in Toulon?
Our law firm in Toulon specializes in legal support for companies in difficulty.
We provide :
- A precise analysis of your financial and legal situation
- Complete preparation of the backup file
- Relations with the court and the court-appointed administrator
- Legal certainty at every stage
- Protection of the executive’s interests (liability, prosecution, sanctions)
We work in conjunction with the Var courts, for all types of collective proceedings in Toulon.
Frequently asked questions about the backup plan
What’s the difference between sauvegarde and redressement judiciaire?
Safeguard is designed for companies that have not yet suspended payments. Reorganization comes later, when the company is insolvent.
Can I apply for a safeguard if I’m already insolvent?
No. In this case, you will have to consider receivership or, as a last resort, compulsory liquidation.
How long does a backup plan last?
The maximum duration is 10 years, but the average is usually 3 to 5 years.
Can I continue to run my company during the safeguard period?
Yes, unless the court decides otherwise. You will remain in office, under judicial supervision.
What are the consequences for my creditors?
Debts are frozen, rescheduled or renegotiated. The plan makes it possible to spread repayment and restore confidence.
Contact a lawyer to set up a safeguard plan in Toulon
Is your company going through a critical period, but not yet insolvent?
Act before it’s too late.
Contact our law firm in Toulon to set up a corporate safeguard procedure. We offer you a confidential legal diagnosis and customized support, to preserve your business, your jobs and your future.
