House builder AST placed in “accelerated safeguard” procedure

The house builder AST, in great financial difficulty, announced on Friday April 19 that an accelerated safeguard procedure had been opened at the Lyon commercial court, in the hope of "guaranteeing its operational continuity", against a backdrop of crisis in the area.

AST, which claims to be the second largest builder of individual houses in France, is suffering from the violent crisis in new real estate.

The group announced in a press release "the opening, on April 17, 2024 and at its request, of an accelerated safeguard procedure by the Lyon commercial court with the aim of guaranteeing its operational continuity while best preserving the interests of its commercial partners and collaborators.

This procedure, underlines the group based in the metropolis of Lyon, "only involves the financial establishments of AST Groupe, the founding shareholders and the public creditors", who will be affected in particular by stoppages of payments.

On the other hand, continues AST, “customers and other creditors, such as the group's suppliers and subcontractors, are not affected by the procedure”.

“AST Groupe will remain fully operational throughout the observation period of a maximum duration of 4 months and will present to the commercial court at the end of it a business continuity plan,” according to the press release.

The group had already announced at the beginning of March a restructuring plan involving a "significant reduction in workforce", its disengagement from regions outside the south-east, its historical scope, and the gradual cessation of its activity in real estate development.

It also had its stock market listing suspended.

At the end of March, the group's cash flow amounted to 13 million euros while its debts peaked at 25,3 million, or a net debt of 8,2 million, according to the press release published Friday.

Since the start of 2024, several major developers (Nexity, Vinci Immobilier, Bouygues Immobilier) have announced social plans.