Declaration of Composition with Creditors

Composition with creditors is a restructuring agreement, approved by the court, between a debtor that is unable to pay its debts or at risk of being unable to do so and its creditors. Its purpose is to enable the debtor to restore its financial balance without going into bankruptcy. The court may grant the debtor first a provisional and then a definitive moratorium. During those periods enforcement proceedings against the debtor are stayed, securities may not be realised, and the debtor continues its activities under the supervision of a composition commissioner.