Companies in difficulty
reserved for subscribers
- company in difficulty
A decree has just slightly modified the open aid scheme to help farms in financial difficulty.
In case of economic difficulties it is possible to ask the DDT (M) two helpers aimed at operational recovery. A decree published on 6 August 2022 in the Official Gazette has just relaxed the terms of access.
Funding for an audit …
First aid gives a financial boost (maximum 1,500 euros) for the realization of a overall operational audit.
To benefit from it, the transaction must meet at least one of these criteria verified in view of the last financial year closed or on the basis of the last closure of the accounts:
- A debt ratio greater than or equal to 50%;
- Or a gross operating margin (EBITDA) relating to the gross product less than or equal to 25%.
These conditions do not apply when the transaction is the subject of an amicable settlement, safeguarding or recovery procedure. She is directly admissible.
… And bank charges and interest
This condition is also valid for the recovery assistance of exploitation “which completes the open system a farms in difficulty. Corresponds to the assumption in whole or in part of the costs or bank guarantees relating to the restructuring of operations, bank interest, interest on loans or payment facilities contracted with suppliers and the cost of the service, excluding taxes, of the technical and economic follow-up.
The amount of the aid is limited to 10,800 euros for the first self-employed work unit and 10,000 euros per additional work unit, according to a decree published on 6 August in the Official Gazette. The cap per employee is set at 2,000 euros.
To benefit from this support, an audit must have been carried out in advance in the 12 months preceding the submission of the aid application. This document must show a prospect of “return to profitability through the commitment to a restructuring plan”, specify the terms of the decree.
The transaction must meet at least three of the following criteria in view of the last closed financial year or the last closure of the accounts:
- A debt ratio greater than or equal to 70%;
- A cash level less than or equal to 0;
- A gross operating surplus relative to gross product less than or equal to 25%;
- Available income per self-employed unit less than or equal to an annual net Smic for main companies and half of an annual net Smic for secondary companies.
The applicant must also justify, in view of the last financial year closed or the last report, additional requirements depending on whether it is a company or not. For limited liability companies, a reduction of more than 50% of the amount of the share capital is required for accumulated losses of reserves and shareholders’ equity. For companies with unlimited liability and individual companies, a reduction of more than 50% of the net assets must be demonstrated.