Opening of judicial liquidation proceedings for Recylex

Opening of judicial liquidation proceedings for Recylex


Recycling SA (Euronext Paris: FR0000120388 – RX) (the “Company”) announces that on November 9, 2022, the Paris Commercial Court ordered the commutation of the Company’s restructuring proceedings initiated by judgment of May 5, 2022 1 in liquidation proceedings.

This conversion follows the decision of the Paris Commercial Court of July 6, 2022 2 to approve a plan for the partial sale of Recylex SA through a “pre-pack sale” process to the Belgian company Campine NV.

As a reminder, the partial disposal plan affected the lead and polypropylene recycling activities at the company’s Escaudoeuvres (North) and Villefranche-sur-Saône (Rhône) sites, all jobs related to these sites and Recylex SA’s stake in C2P SAS, the is fully owned by the company, for a total selling price of approximately €4 million.

Campine has managed the assets and activities included in the scope of sale since July 7, 2022. The resulting deeds of sale are currently being settled.

As a result of this partial sale, Recylex SA’s business has been reduced to a holding activity consisting of the management of significant financial and environmental liabilities and a 50% interest in Recytech SA, which interest is subject to several pledges 3 .

Recylex SA has been involved in a reorganization process to study a legal solution for the restructuring of its debts. On July 13, 2022, the Paris Commercial Court ordered the Company’s observation period to continue until its expiration on November 5, 2022.

In these circumstances, it appears that Recylex SA no longer generated any income of its own, but its only income consisted of dividends from Recytech SA

Recylex SA’s court clerks considered that the company was clearly unable to draw up a recovery plan that would enable it to meet its liabilities and referred the matter to the Paris Commercial Court to have the reorganization turned into a court case …

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