Judicial trustee

A judicial trustee (mandataire judiciaire) is a court-appointed officer in French insolvency proceedings who represents the interests of creditors collectively. Their role is distinct from the judicial administrator (who focuses on the company's continuation): the judicial trustee verifies creditor claims, ensures proper ranking and priority, distributes available assets to creditors and monitors compliance with approved plans. In due diligence on distressed targets, identifying the judicial trustee and understanding the current status of the procedure — number and value of verified claims, estimated recovery rates — is essential for assessing residual value and structuring any acquisition.

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Example: in the judicial reorganisation of a French company with CHF 5.2 million of verified creditor claims (CHF 1.8 million secured, CHF 3.4 million unsecured), the judicial trustee estimates a 95% recovery for secured creditors and 15% for unsecured creditors under the proposed continuation plan. This recovery analysis is a key input for any acquirer assessing whether to submit a competing disposal plan offer versus supporting the continuation plan.

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Hectelion liaises with judicial trustees in distressed acquisition processes to obtain accurate creditor claim data and recovery analyses for transaction structuring.