Initiated in November 2021, the increase in the opening of proceedings is accelerating each month. All sectors are affected, but consumer-related activities – catering, retail, personal services, etc. are the most vulnerable. In the regions, Ile-de-France and Corsica resist the best.
Thierry Millon, director of Altares studies: “In 2020 and 2021, fewer than 61 insolvency proceedings were opened compared to 000 in the two previous years. More than 107 businesses were saved from bankruptcy during the long Covid period. Without the famous government “whatever the cost”, the health crisis could have caused many more procedures. In the 000st quarter of 46, the noose of the health crisis loosened and aid stopped. A return to a form of normality which also implies a resumption of failures. The rise is therefore beginning and it is already very clear in sectors that rely on the resumption of consumption habits such as going to a restaurant or to the hairdresser. No territory is spared by the phenomenon. »
Business insolvencies up 34,6% year-on-year near early 2020 levels
9 companies defaulted between January 972 and March 1, 31, an increase of 2022% compared to the same period of 34,6. These levels, close to the 2021st quarter of 1 (2020), are still clearly lower than those of 10 or 902 which were around 2019 defects.
With 220 judgments recorded this quarter, the number of safeguard proceedings increased by 29,4%. This device represents only 2,2% of all procedures.
Reorganization proceedings (RJ) are rapidly increasing by 46,6% for 2188 judgments pronounced. They represent less than one in four judgments (22%), a rate well below the 30% recorded in 2018.
Judicial liquidation judgments (LJ) also increased sharply (+31,7%; 7 liquidations).
Young companies are the hardest hit
Nearly half (48%) of companies that went bankrupt in the 1st quarter were created less than 5 years ago. Even more severe, failures among companies founded during or just before the crisis soared by 52%. 1927 procedures relate to structures less than 3 years old. 83,8% are immediately placed in judicial liquidation.
It should be noted that more than 90% of these are commercial companies (and not micro-enterprises). The difficulties of young companies are particularly marked in “multi-department store” activities (essentially general food stores) where defaults are three times more numerous this quarter; but also in restoration (+180%), where the number of procedures was exceptionally low a year ago.
Up 56% over one year, the number of procedures for small SMEs exceeds the pre-crisis level
94% of companies in default of payment are VSEs, a relatively constant share. On the other hand, we observe more remarkable tensions among SMEs. In particular for “small” SMEs with 10-49 employees where insolvencies soared by 56% over the year (645), exceeding the pre-crisis level (632). These structures are concentrated in the sectors of construction, trade and industry. SMEs with at least 50 employees are more resistant with virtually stable failure rates.
Insolvencies up in two-thirds of sectors, sometimes exceeding 2020 levels
After an encouraging start to the year, the war in Ukraine and its consequences should prompt caution.
Thierry Millon concludes: “At the start of 2022, confidence in the future was gaining ground: cash levels and well-filled order books suggested a recovery in the economy. However, since February 24 and the start of the Russian invasion of Ukraine, the horizon has darkened: soaring energy prices, supply difficulties, shortages of materials, rising inflation packs… so many signals that encourage caution. Like the government's "whatever the cost" deployed during the health crisis, the new Resilience Plan of 7 billion euros should help prevent the bankruptcy of companies directly impacted by the war and those hardest hit by the crisis. soaring energy prices. This new package of measures (partial activity, PGE, etc.) should relieve cash flow, but the government is urging companies to do everything to continue paying their bills on time. Indeed, if intercompany payment deadlines have been well controlled until now, the turbulence at the start of the year could change the situation. Financial departments could be tempted to procrastinate more and more on the payment of invoices to conserve their cash. Under these conditions, the upward trajectory of corporate insolvencies should continue, but at this stage without suggesting a wave of bankruptcies, as companies still have cash. »
Focus / The crisis exit processing procedure: 5 months later, where are we?
Created by the law of May 31, 2021 relating to the management of the exit from the health crisis in its article 13, the crisis exit processing procedure (PTSC) must allow a faster recovery for companies in financial difficulties linked to the consequences of the health crisis. It is therefore aimed at companies that were operating in satisfactory conditions before the Covid crisis. In application since October 18, 2021 the day after the publication of decrees n° 2021-1354 and n° 2021-1355 of October 16, 2021, this PTSC is not intended to be permanent and should expire on June 2, 2023.
The PTSC may concern companies with less than 20 employees on the date of the request for the opening of the procedure and (cumulative criteria) with less than 3 euros in total liabilities excluding equity. The annual accounts for the last financial year are required and must appear "regular, sincere and capable of giving a true image of the company's financial situation".
In principle, therefore, this new procedure may concern a large number of companies in default of payment. However, the latter must be able to pay their employees. Indeed, unlike receivership, the PTSC does not allow you to benefit from an advance from the wage guarantee scheme (AGS), which can prove to be a brake.
The observation period is for a maximum of 3 months, after which a debt repayment plan may be decided by the Court for a period of up to ten years. Failing to have been able to draw up a draft debt clearance plan, the Court opens a judicial reorganization or a judicial liquidation.
Five months after the start of the PTSC, barely more than thirty procedures have been opened; 18 in the first quarter of 2022 and 14 in the last quarter of 2021. Of these, 2 have since been subject to receivership or compulsory liquidation. 10 were able to validate a plan whose duration was fixed between 5 and 10 years.
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