Insolvency Assistance

We assist Moroccan and international businesses in financial distress through debt restructuring, capital operations, and insolvency procedures.

Our restructuring experts and court-appointed trustees guide you through refinancing and payment rescheduling, as well as judicial proceedings under Moroccan law (sauvegarde and redressement).

Scope of Missions

  • Debt and capital restructuring in Morocco:

    It allows businesses to enhance financial stability, optimize capital allocation, and secure long-term growth, protecting both creditors and shareholders.

    Key Components of Debt & Capital Restructuring

    1. Debt Restructuring
    Involves renegotiating loan terms, interest rates, and repayment schedules with creditors to improve cash flow and reduce financial pressure.

    • Example strategies: Debt-to-equity swaps, rescheduling of loans, interest rate renegotiation

      Industry relevance: A real estate company may restructure long-term project financing.

      2. Equity and Capital Restructuring
      Adjusts the company’s equity structure to optimize ownership, attract investment, or support strategic growth.

      Example strategies: Issuance of new shares, buybacks, recapitalization, investor equity participation

      Industry relevance: A startup may restructure equity to bring in venture capital while retaining founder control.

      3. Risk Assessment and Financial Planning
      Evaluates financial stability, debt obligations, and liquidity needs, providing a roadmap to minimize risk and maintain operational efficiency.

      • Example metrics: Debt service coverage ratio, leverage ratios, cash flow projections.

  • Insolvency proceedings in Morocco, including financial diagnostics and court filing, allow companies to assess their financial health, pursue structured restructuring, or implement orderly liquidation.

    • Key Components of Insolvency Proceedings

      1. Financial Diagnostic and Assessment
      A comprehensive financial health diagnosis evaluates the company’s ability to meet obligations and identifies the causes of distress.

      2. Court Filing and Legal Proceedings
      Once insolvency is identified, formal court proceedings are initiated under Moroccan insolvency law. This ensures a structured and legally compliant resolution.

      3. Pre-insolvency (Sauvegarde judiciaire) or Insolvency Reorganization (Redressement judiciaire)
      If feasible, the company may undergo debt restructuring, operational reorganization, or capital injection to restore solvency.

      4. Liquidation and Creditor Protection (Liquidation judiciaire)
      If reorganization is not viable, assets are liquidated in an orderly manner, ensuring fair treatment of creditors.

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