Judicial liquidation (liquidation judiciaire) is the formal insolvency procedure in French law ordering the cessation of the company's activity and the realisation of its assets to pay creditors, when no viable continuation is possible. It is opened when judicial reorganisation is impossible or has failed. A liquidator appointed by the court sells the assets — either individually or as a going concern through a disposal plan — distributes proceeds to creditors in order of priority, and closes the procedure once all assets are realised. In Distressed M&A, judicial liquidation disposal plans allow acquirers to purchase specific assets without inheriting the insolvent company's liabilities.

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Example: a French manufacturer enters judicial liquidation with CHF 8.0 million of unsecured debt. A strategic acquirer submits a disposal plan offer of CHF 2.2 million for the manufacturing assets, client contracts and 85 employees — acquiring only the assets it needs without the legacy liabilities. The court approves the plan, the liquidator distributes available proceeds to creditors in priority order, and the liquidation procedure closes.

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Hectelion advises buyers in judicial liquidation disposal plan processes, providing asset valuation and rapid due diligence under court-imposed timelines.