Compulsory liquidation is the end of the line in insolvency proceedings. Two cumulative conditions: the business has ceased payments — it can no longer pay what is due with what it has available — and its recovery is manifestly impossible. The court then ends the business activity and organises the realisation of the assets.
The debtor loses control: it is divested of the administration and disposal of its assets. A liquidator represents it, sells the assets and verifies the claims. The supervising judge admits or rejects each claim lodged; the resulting list forms the schedule of claims, filed with the court registry and available for consultation.
Judicial reorganisation is the related procedure, opened when recovery is not manifestly impossible: it begins with an observation period, at the end of which the court adopts a plan, orders a sale, or switches to liquidation.
Bernard Collorafi's three companies — SEBOL, B & O, Les Pins — were liquidated by the Antibes Commercial Court in 2001. The case file holds the schedules of their claims.