Address
Phone
Email
Lionel Lamoure is interviewed on the restructuring of state-guaranteed loans (PGE) for the “3 questions to” section of the Hebdo – DROIT ET PATRIMOINE (January 15, 2024).
On January 7, 2024, Bruno Le Maire announced the extension of the market agreement on the restructuring of state-guaranteed loans (PGE) within the framework of the Médiation du crédit aux entreprises until 2026. What are the concrete consequences for companies? Lionel Lamoure explains.
Why is this good news for companies?
The good news is that the PGE restructuring scheme has been extended until 2026, i.e. until the first PGEs expire. Companies will thus be able to call on the Médiation du crédit if they consider that they are in difficulty in repaying their EMPs in accordance with the terms initially laid down, subject to certain conditions, notably an amount condition, since this procedure is reserved for VSE/SMEs that have taken out one or more EMPs for a total amount not exceeding 50,000 euros. The mechanism provides for a single point of contact, namely the Credit Mediator, with fairly straightforward procedures. This gives the companies concerned the option of rescheduling their EMP for a further 2 years, or even 4 years in exceptional cases.
It is even possible to freeze maturities for 6 months, to give companies some breathing space. It’s a well-thought-out solution that will smooth out the scheduling process. With this announcement, the French government is sending out a strong signal of support for businesses, and indicating that it is attentive to the burden that this new debt may represent for certain companies. Of course, it is not a question of supporting moribund companies, and this restructuring capacity of the PGE will not be opened in the event of too deep structural problems. Companies must be able to demonstrate their ability to turn around.
What about larger companies?
For SMEs, ETIs and large groups, the restructuring of EMPs in excess of €50,000 involves a conciliation procedure (to maintain the government guarantee), which is an amicable and confidential procedure conducted under the aegis of a conciliator appointed by the commercial court. This allows for a comprehensive restructuring, as repayment of the PGE is rarely the only problem in the current context. In addition to the EMP, the restructuring of all debt will be examined, and the State may agree to make efforts on social security and tax debts. If the situation so requires (due to more advanced difficulties or the impossibility of reaching an agreement), the restructuring will be carried out through a collective procedure opened by the commercial court (safeguard or reorganization), which will be public.
What about very large PGEs?
Exceptionally, in certain large-scale cases, the French State has agreed to convert the debt into equity or quasi-equity, or to abandon it with a financial recovery clause (in the latter case, with the arrival of a new shareholder), but this remains exceptional and is examined on a case-by-case basis. The question of this type of EMP restructuring will arise for certain companies with a strong social stake, for which a simple extension will not suffice, but whose fundamentals and operating performance remain very positive.
