Safeguard proceedings (procédure de sauvegarde) are designed for businesses encountering difficulties they are unable to overcome, but which are not insolvent. They are intended to facilitate reorganization allowing the continuation of business with debts frozen during the safeguard period.

       
       

Reorganization proceedings (redressement judiciaire) concern insolvent companies. They automatically open an observation period. They may result in the adoption of a plan for the continuation of its former business, in which case assets and liabilities will have to be restructured (debt release or moratorium, etc), or in a plan for the sale of assets, or in liquidation.

       
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Keyria in safeguard proceedings

Paris October 28, 2009 – The Paris Commercial Court officially recorded the inception of safeguard proceedings (procédure de sauvegarde) for the parent company Keyria SAS. The court has initiated reorganization proceedings (redressement judiciaire) for several subsidiaries located in France. 

The economic crisis and more specially the heavy clay market weakness have strongly impacted Keyria. Keyria subsidiaries have experienced significant cancellations of orders at the end of 2008 and a sharp decline in their business since early 2009.

Aiming to overcome the economic slump through extensive reorganization, on July 31 Keyria announced a plan for general restructuring. Related financing was the object of a preliminary agreement approved by the Paris Commercial Court but it could not succeed due to an even greater degradation of keyria’s markets and business opportunities of its subsidiaries.

As a consequence, the Paris Commercial court has initiated safeguard proceedings for the parent company Keyria and reorganization proceedings for the insolvent French companies (Adler, Ceric SA, Fimec, Hallumeca, Pelerin and Tecauma). They will continue operation during the related observation period of four months.

All these procedures are centralized in the Commercial Court of Paris.

The company management is mobilized to maintain the high level of commitment to its customers by making every effort to ensure the continuity and continuation of projects developed with them.

Should you have any inquiry or question relative to these proceedings, please get in touch with your usual contact at our company or subsidiaries.