France’s Bourbon Corporation has requested redressement judiciaire (rehabilitation proceedings) in the Commercial Court of Marseilles.
The company made the move after China’s ICBC Leasing told the company it intends to demand all outstanding payments up to 2026 as part of a guarantee provided for its operating companies, which are currently in arrears.
Bourbon Corporation went to the court earlier this week to file for a sauvegarde (safeguard) procedure, however the court rejected the application ruling that the ICBC demand makes the company insolvent.
The rehabilitation proceedings will only concern Bourbon Corporation, a holding company, and not the operating companies of Bourbon, which will continue normal operations. The proceedings are specifically designed for companies in a state of cessation of payments that have not ceased activities.
Bourbon says it will continue with its #BOURBONINMOTION strategic action plan, and that the demands from ICBC Leasing were made despite ongoing negotiations on a financial restructuring of its debt. The company’s board is currently deciding between two financial restructuring plans, one from its main lenders and lessors and the other from main shareholder Jacques de Chateauvieux.