The partly paid-up share capital is neither the credit reserve nor an available asset.
A company can be got into bankruptcy reorganization proceeding even when the remaining capital amount to release is widely superior to the current liabilities.
The Court of Cassation has confirmed the decision of Paris Court of Appeal which retained “that the partly paid-up share capital could not be assimilated to the available asset or to the credit reserve in the sense of article L. 631-1 the Commercial code, and that it was not necessary to analyse if the totality of the current liabilities was required since it was not proved that the debtor beneficiated from the other credit reserve.”
Court of Cassation Chamber of Commerce 23 April 2013 N 12-18.453, 447
Published in Bulletin