French Court Determines Sequana to Be Liquidated
Sequana, the parent company of Arjowiggins, will be liquidated over a two-year period by a court-appointed liquidator, and the group will ask Euronext to continue the suspension of its share trading on the Paris Stock Exchange.
May 16, 2019 (PrintWeek) - Sequana, the parent company of Arjowiggins and currently the majority shareholder in Antalis, is to be liquidated, a court has ruled.
The decision was announced [May 15] by the Commercial Court of Nanterre (France).
Sequana will be liquidated over a two-year period by a court-appointed liquidator, and the group will ask Euronext to continue the suspension of its share trading on the Paris Stock Exchange.
The decision comes after a High Court ruling was upheld by the London Court of Appeal in February, ordering Sequana to pay a EUR 163m (£143m) to British American Tobacco (BAT) in a protracted dispute over the distribution of dividends in 2008 and 2009.
Following the court ruling the company's safeguarding procedure was converted to a bankruptcy filing by the court on 21 March with an observation period set until 18 May, during which time Sequana has been unable to come up with a recovery plan.
A statement on Sequana's website says the decision to liquidate the business has resulted from its inability to present a recovery plan in light of its liabilities linked with the BAT dispute.
In addition, it states, most companies in the Arjowiggins group are currently subject to insolvency proceedings, and Sequana is not in a position to support those commitments or to finance their operation and litigation costs any longer.
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