Investigations for creditors
In the context of conservatory measures (pre-litigation)
If there is a significant risk of the debtor defaulting on the repayment of the debt, in the absence of a writ of execution, any person may request the judge to authorise a protective measure (ie. freezing injunctions) on the debtor’s assets. (Cf. art L.511-1 of the C.P.C.)
This protective measure will grant a privileged creditor status, meaning one who can be reimbursed in priority if a court decision rules in its favour. It also prevents the debtor from organising his insolvency.
CAPITAL INVESTIGATIONS intervenes in the carrying out of financial and asset investigations with the aim of provisionally securing the claim until it can be titled and enforced.
In addition to the search for certain movable assets of the debtor (shares, bonds, goodwill, patents, etc.) and real estate held directly or indirectly, CAPITAL INVESTIGATIONS will carry out in-depth research in order to demonstrate the debtor’s asset and financial organisation and, if necessary, to reconstitute the ownership linkages of elaborate corporate structures.
CASE STUDY
A lawyer specialising in banking law requested our services in connection with the recovery of a debt of more than 12 million € on behalf of a private lending institution facing a property trader who had been in default for more than two years.
In view of the complexity of the financial organisation of the said borrower, CAPITAL INVESTIGATIONS was mandated to carry out an in-depth investigation with a view to provisionally securing various assets pending the judgment on the merits of the claim.
Our investigations made it possible to demonstrate the borrower’s assets and financial organisation by reconstituting the shareholder relationship of the shell companies that he had set up, to identify the real estate held through certain entities throughout the country and, lastly, to verify the conditions of acquisition of the assets and whether they were subject to mortgage registrations.
In the context of enforcement (post-judgement)
Any creditor in possession of a writ of execution establishing a liquid and payable debt may pursue its forced execution on the property of his debtor under the conditions specific to each enforcement measure. (Cf. art. L111-2 of the C.P.C.)
For a judicial decision to be enforceable, it must be final, it must have been notified or duly served on the debtor and it must be within the statute of limitations.
This essential phase often proves risky for the creditor who wishes to recover its debt when faced with a debtor in bad faith who seeks to avoid his responsibilities by wasting time, concealing his assets or organising his insolvency.
CAPITAL INVESTIGATIONS also intervenes at this stage by carrying out investigations which, in addition to locating the debtor’s real address, make it possible to precisely determine the debtor’s movable and immovable assets, throughout the country.
CASE STUDY
By order of the Paris Commercial Court, a company specialising in biotechnology research and development was ordered to pay a group of laboratories the principal sum of 150.000€ for unpaid invoices.
The unsuccessful attempt to recover the said claim by seizure of assets, in particular because of overdrawn bank accounts, led the claimant to mandate us to carry out financial investigations to determine the debtor’s seizable assets.
The investigation identified that a large part of the assets consisting of materials and equipment of the debtor company had been contributed, in the amount of 544.000€, to a sister company which had been set up for this purpose and in which the debtor was a shareholder.
The production of our investigation report led to the seizure of these materials and equipment.
CAPITAL INVESTIGATIONS also acts on behalf of creditors wishing to protect themselves by ensuring the solvency of their debtor before taking any legal action to recover their debt.
OUR METHODOLOGY
1. Reviewing the case
After receiving and reviewing the documents provided by our client and carrying out preliminary research, we determine the lines of investigation to be followed in collaboration with the client. We respond to any request in an individualised manner and within the timeframe required by the urgency of the demand.
2. Engagement contract
CAPITAL INVESTIGATIONS systematically proposes a mission contract or a written mandate defining the legal framework and the investigations to be carried out. We take care to define precisely the conditions and means of execution of the service as well as the terms for calculating the quote.
3. Research and investigation
Once CAPITAL INVESTIGATIONS has been duly mandated, we carry out the necessary work in accordance with the strategy previously established. If necessary, we are able to process the mission in relation with other professionals (lawyers, bailiffs, etc.) or experts. We undertake to keep the client informed of the progress of the investigations, especially in the event of any changes or complications
4. Investigations Report
At the end of the investigations, an objective, detailed and comprehensive investigation report is sent to the client. Investigation reports are admissible in court in the name of the principle of freedom of evidence, but subject to compliance with specific substantive and formal conditions which we scrupulously observe.
CONTACT US
For any information, do not hesitate to contact us by e-mail via the form below or directly by phone on +33 1 48 92 92 49, our switchboard is open from Monday to Friday from 10am to 7pm.