Acquisition under a disposal plan of the assets of several companies within the same hotel group undergoing administration

Issue

Several commercial companies within the same group, based in the south of France, were the subject of separate proceedings, whilst being linked by complementary assets: premises, hotel and catering business assets, as well as a licence to operate a beach under a municipal concession. This division between separate entities made the takeover particularly complex, both legally and operationally, as each element was subject to its own specific constraints and to the assessment of the Nice Commercial Court.

Challenges

It was not simply a matter of acquiring these assets, but of rebuilding a coherent economic entity from disparate parts, whilst securing every authorisation and every transfer. It was necessary to convince the court of the soundness of the takeover plan, to maintain business continuity and to ensure the optimal valuation of the assets in question. The difficulty lay in coordinating these multiple aspects within the constrained and competitive framework characteristic of ‘in-court’ disposals, where every decision has implications for economic, legal and regional interests.

Solution

Cahn Wilson has devised a strategic approach to organise these constraints into a clear and coherent takeover proposal. Working alongside one of France’s leading groups in the hotel and catering sector, the firm was able to:

• secure the legal aspects of the sale,
• anticipate the court’s expectations
• take into account the specific characteristics of the various assets,
• ensure that the necessary operating licences under concession were in place.

This rigorous preparation and comprehensive overview led to a successful takeover as part of the divestment plan, illustrating how a well-managed legal strategy can transform a fragmented situation into a coherent and viable transaction.