When a French company goes into judicial reorganisation, the first reflex is almost always the same: everyone focuses on the debt, the cash position, upcoming maturities, arrears, supplier pressure, any covenants, and bank lines that have been frozen or cut.
That makes sense. But it is often not enough.
In a number of cases, the real question is not only: how do we survive in the short term?
It is: which assets can still be put to smart use to create breathing room?
Production machinery, inventory, operating property, sometimes even specific assets that are undervalued internally: a company in difficulty may be sitting on a source of liquidity it does not use, or uses badly.
Judicial reorganisation does not mean you have run out of options
Many business leaders still see judicial reorganisation as the point where options run out. As if, once proceedings have opened, all that is left is to wait, negotiate, put up with it or hope.
That is a mistake.
Yes, the framework becomes tighter. Yes, the legal and operational room for manoeuvre narrows. Yes, not every funder will stay on board. But that does not mean there is no solution.
It simply means something different: you have to stop thinking as you would in normal times.
A company in reorganisation can no longer raise finance on the strength of a growth story or an optimistic business plan alone. Where financing is still possible, it rests on tangible, verifiable elements that can be secured.
In other words, on its assets.
Three types of asset to look at first
When a company is under pressure, it has to go back to basics. Not every asset can be financed, and not all assets are equal. But some need to be examined straight away.
Inventory
In some sectors, inventory is underrated as a source of financing. It is a classic mistake.
When it can be identified, valued and properly tracked, and is at least partly liquid, it can once again provide credible support for refinancing.
But be realistic: not all inventory is equal. Old, mixed, slow-moving or highly specific stock will not carry the same financing value as standardised, traceable stock that can be resold.
So it is not enough to say: we have inventory.
You have to show: our inventory can be financed.
Industrial machinery and equipment
In industry, many companies in difficulty keep running valuable equipment without really factoring it into their financial thinking.
It is a common blind spot.
Some machines can open the door to sale and leaseback or asset-based finance, provided several criteria are met: clear ownership, identifiable residual value, resale potential, available documentation and a coherent equipment base.
Here again, you have to face facts: a machine that is useful to the business is not automatically a machine that can be financed.
The market does not finance usefulness to the business; it finances asset value.
Operating property
When a company, or its group, owns its premises, the refinancing potential can be significant. In a deteriorating situation, property is often one of the few assets that can still reassure some market players.
But too many companies look at it far too late.
They wait until the pressure is at its peak before reviewing their property, when serious groundwork should have started much earlier: ownership structure, existing security, market value, possible contamination, tenancy position and how it fits with the proceedings.
The more urgent things become, the more improvisation costs.
The real problem: most companies present their assets badly
This is where many cases go wrong.
The assets are there, but the file is poorly prepared. Information is scattered. Title deeds are incomplete. Asset lists are inaccurate. Values are simply asserted. Technical documents are missing. Management sometimes confuses book value, economic value and financing value.
The result: an asset that could have been used becomes unusable in the time available.
This is often what separates a real option from the illusion of a solution.
What specialist funders are really looking for
Funders able to step in when things are tight are not looking for reassurance. They are looking for substance.
They want to understand quickly:
which assets actually exist,
who legally owns them,
what they could realistically fetch on the market,
how liquid they are,
what security is already attached to them,
and the timeframe within which a transaction is still feasible.
In other words, they do not finance an intention.
They finance a structure they can understand.
Time lost before the work is organised is often the biggest hidden cost
This is probably the point business leaders most often misunderstand.
Many think they are short of money. In reality, what they lack first is preparation.
They come to the market too late, with an incomplete file, hoping urgency will somehow create interest. It does the opposite. Unprepared urgency destroys credibility, narrows the options and weakens your negotiating position.
In judicial reorganisation, every week counts. But not every week is worth the same.
One week spent properly preparing a file can reopen options. Three weeks lost to internal indecision can be enough to close them again.
What to look at straight away
Before even talking to a funder, a company in reorganisation should be able to set out in black and white:
the list of assets that could be used,
who owns them and on what basis,
a realistic estimate of their value,
existing security or financing,
the constraints imposed by the proceedings,
and the exact purpose of the financing: short-term cash, refinancing, keeping the business running, an industrial relaunch or a way out of the crisis.
Without this, you are not running a financing process. You are improvising under pressure.
At Youllsee, our view is simple
In special situations, looking for money is not enough. You first need to understand what can be financed.
Some companies in judicial reorganisation still have real, sometimes substantial, assets but lack the method, the framework and the right contacts to turn them into a credible financing solution.
This is not about selling hope. It is about identifying, with a clear head, what can be financed, what cannot, and on what terms a transaction can still be put together.
It takes analysis, sorting, discipline and execution.
In this kind of situation, the difference is rarely down to intentions. It comes down to the quality of the file.
Conclusion: in judicial reorganisation, assets can still create options
Judicial reorganisation does not automatically shut the door on financing. What it does rule out is vague talk, superficial presentations and poorly prepared approaches.
When a company has inventory, machinery or property, there may be levers to pull. But they have to be examined coolly, documented properly and presented in a form funders can work with.
It is hard to hear, but it needs saying: under pressure, a poorly prepared asset is worth almost nothing. A well-prepared asset, by contrast, can become a strategic option again.
Do you run a company in difficulty, or advise a group with industrial assets, inventory or property? Youllsee assesses whether asset-based financing solutions are feasible in complex contexts and special situations.
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