Extract
[...] Is it now forbidden for a company to guarantee commitments taken not by its subsidiary, but by a supplier or subcontractor in favor of a bank? The the guarantee of a third party's debt is not forbidden and if this was done without any financial counterpart, but just an implicit business counterpart, is this a credit operation? We could discuss this. In fact, there is an indirect interest in what the subcontractor does, but is this constitutive of a counterpart in the sense of a credit operation? [...]
[...] One must not undress Peter to dress Paul. Notably, all of this is outside the scope of corporate M&A. In fact, on the corporate level, when a third-party company X lends to company even if the latter is its subcontractor or supplier, it must be mindful of its social interest, common directors, regulated conventions? 2° The net working capital defined as the value of current financial assets less than one year, minus the value of current financial liabilities less than one year, as of the closing date of each of the two preceding financial years of the lending company is positive; [...]
[...] Inter-enterprise credit Article L511-6 of the Monetary and Financial Code : « The prohibition on credit operations does not apply: 3 bis. To commercial companies whose accounts for the last closed financial year have been certified by a statutory auditor or who have voluntarily appointed a statutory auditor and which, as an accessory to their main activity, grant loans of less than three years to micro-enterprises, small and medium-sized enterprises or to small and medium-sized enterprises with which they have economic ties justifying them. [...]
[...] If indeed, it's complicated for a third party to lend, it's less complicated for it to give its guarantee to the creditor who is going to lend to it. We don't need this thing. It's enough for the company to tell its subcontractor, 'go see your bank, I'll give you a call if you have any particular difficulties, borrow the amount you need and I'll offer you my guarantee in the context of your repayment'. However, in this case, it's not a credit operation. Of course, we must ensure that the guarantee is in line with the social interest, it's always the same thing. [...]
[...] Example: Stellantis may have an interest in financially supporting its subcontractors through credit operations. Let's imagine that a subcontractor manufactures the front and rear headlight plexiglas for Peugeot vehicles at a rate of 85% and that it defaults, Stellantis may not necessarily have an immediate replacement solution and will likely offer financial assistance through loans to improve its logistics chain, to finance a recruitment plan, a social plan? Similarly, if a company has granted brand or patent licenses, it may have every interest in financially supporting the licensee so that it "spits out cash" and the product takes economic shape and the royalty rate base increases. [...]
