Meteorage Franklin

Résumé du livre

SUBJECT AREAS: Financial distress, French insolvency law. CASE SETTING: 1989; France; lightning detection company in distress. This case concerns a small French firm which built and now operates a lightning detection network spanning France. The timing of the case is Summer 1989. At that time, the owner is told that the firm will not be receiving a previously pledged, and much needed capital infusion. Facing imminent bankruptcy without either bank concessions or a new source of cash, the case requires that students determine the viability of the firm and propose a restructuring to ensure its continued survival. The firm entered a newly introduced and rarely used insolvency procedure quite unlike any procedure offered in other countries known as reglement amiable (negotiated settlement). Within this procedure the firm negotiated a new debt repayment schedule and concessions from its banks. In addition, the firm did a sale-leaseback of essentially all of the assets of the firm (the lightning detection network). The students are provided pointers in the direction of these solutions. The case includes a short exhibit outlining the relevant French bankruptcy law as well as a diskette with financial exhibits and forecasts.