French insect company Ÿnsect has requested to enter a judicial recovery procedure with the Evry Commercial Court in France after failing to secure financing under its safeguard plan, according to a report from AgFunderNews.

Ÿnsect, which initially filed a safeguard plan with the commercial court last September, had issued a tender offer on January 17 to gauge interest from potential investors or acquirers by February 17. However, despite extensive negotiations, the company has been unable to secure the necessary funding to proceed with the safeguard plan.

“Under these conditions and taking into account the company’s cash flow shortage [it will run out of money at the end of March]… the presentation of a backup plan now appears clearly impossible,” a spokesman told AgFunderNews. “Consequently, a request for conversion of the safeguard procedure into a judicial recovery procedure was filed with the Evry Commercial Court in order to be able to initiate a call for tenders for a takeover into a transfer plan as soon as possible.”

Once judicial recovery is pronounced, Ÿnsect will be placed under judicial administration. “The judicial recovery procedure, and the call for tenders for the sale plan which will be initiated there, will make it possible to offer potential buyers who have expressed signs of interest, as well as any new ones, a different legal framework adapted to a rapid resumption of the company’s activities,” the spokesman added.

Ÿnsect remains under the protection of the Evry Commercial Court and is actively seeking one or more buyers as part of a sale plan. Potential candidate buyers are invited to contact the judicial administrator to access the data room and explore acquisition opportunities.