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2021/06/14 03:06 (GMT)

It is well known that cash is king!However, as a result of the health crisis, French companies have lost around 100 billion euros in equity.As Jean Peyrelevade reminds us in this article, "less equity on the balance sheet of companies means, compared to a normal trajectory, more liquidity and solvency problems and less investment, therefore less growth and more unemployment".In fact, "the number of companies with insufficient liquidity will increase by 50%, affecting a quarter of the total post-crisis, and above all those threatened with insolvency will see their number almost double".In order to avoid an excessive rate of insolvency, to allow a resumption of investments and therefore an improvement in the competitiveness of French companies, the reconstitution of their equity capital will be a major challenge in the months and years to come, particularly in the context of an amicable procedure for the prevention of difficulties (mandat ad hoc or conciliation) or in the context of a safeguard or receivership procedure during the preparation of the repayment plan for creditors.