Factual overview of the Moroccan insolvency framework as reformed by Law no. 73-17 of 19 April 2018: prevention, treatment of business distress, cessation of payments, safeguard, judicial reorganization, liquidation, continuation plan, creditors' committees, role of AMMC and Bank Al-Maghrib.
Ad hoc mandate, conciliation, auditor's alert
Preventive procedure before cessation of payments
After cessation, towards a continuation plan
When recovery is manifestly impossible
Cessation of payments is the inability to meet due liabilities with available assets. The declaration to the commercial court must be filed within 30 days. The date of cessation may be backdated up to 18 months by judgment, directly affecting the suspect period and voidable transactions.
Adopted by the court where there is a serious possibility of recovery, the continuation plan organizes the discharge of liabilities over a maximum of ten years. It may include statutory changes, partial asset sales, or management changes. Law 73-17 reinforced creditors' role through the creditors' committees.
A major innovation of Law 73-17, creditors' committees (credit institutions on one side, main suppliers on the other) vote on the plan in safeguard and reorganization proceedings. Their consultation now shapes the dynamics of restructuring negotiation.
Distressed M&A covers transactions on companies in difficulty, either upstream (out-of-court negotiation) or downstream (sale plan within reorganization). The firm advises buyers, sellers and creditors on structuring, due diligence, representation & warranty packages adapted to a distressed context, and coordination with court-appointed officers.
The Moroccan Capital Markets Authority (AMMC) oversees restructuring operations involving issuers listed on the Casablanca Stock Exchange: ongoing market disclosure, trading suspensions, mandatory tender offers, reserved capital increases, debt-to-equity swaps. Coordination between the insolvency calendar and stock-market obligations is a central point of attention.
Bank Al-Maghrib, the Kingdom's central bank, supervises credit institutions and sets the prudential framework for doubtful, litigious and compromised receivables (banking circulars). This framework directly shapes the stance of Moroccan banks in restructuring negotiations: rescheduling, partial write-off, conversion, additional security.
Phone: +33 1 45 03 20 20
Email: accueil@macmahon-avocats.fr
Address: 33 avenue Mac-Mahon, 75017 Paris, France