Handling the consequences of a receivership

Context

A construction company finds itself in financial difficulty. This has consequences for the company itself, its employees as well as for its clients who had signed contracts for future construction:

• Judicial reorganization: Judicial reorganization is a legal procedure that aims to save a company in financial difficulty, allowing it to restructure its debt and continue its activity, while protecting the rights of its creditors. When a business is placed in receivership, a court-appointed administrator is appointed to oversee the process and help the business develop a viable recovery plan.
• Unemployed Employees: When a business is placed in receivership, it may be forced to lay off some or all of its employees to reduce costs and attempt to get back on its feet. The affected employees then become unemployed and must seek new employment opportunities.
• Future owners without a solution: Clients who had signed contracts with the construction manager also find themselves in a difficult situation. The company’s receivership can result in significant delays or even cancellation of their construction projects. These clients then have to find other solutions to get the construction done, which can result in additional costs and inconvenience.

In such a context, the parties involved may seek to obtain compensation or negotiate alternative solutions with the court administrators or other parties involved. Clients may also turn to other builders to complete their project or seek legal advice to defend their rights.

Stelliant’s action

Assigned by the insurer of the company in receivership, the Stelliant group has intervened on different levels. Indeed, in this context, each entity has brought its expertise and its specific skills to ensure the smooth running of the mission:

• Supervision of operations, human resources and contract management: Stelliant Delegation, composed of the Voxens and Cellinks entities, is responsible for the supervision of operations, human resources and contract management. They ensure that the project is progressing according to schedule, that human resources are adequate and that contracts comply with regulations and stakeholder requirements.
• Costing/Status: Qantex and Stelliant Expertise work together to assess and quantify the costs associated with the project, as well as to develop an accurate status of the assets involved. They provide detailed estimates and analysis to assist stakeholders in making informed decisions regarding project budget, planning and implementation.
• Monitoring the work and carrying out emergency conservation measures: GEOP x AAD PHENIX is responsible for monitoring the progress of the work, ensuring that quality and safety standards are met and reporting any problems. In the event of an emergency, GEOP x AAD PHENIX is also responsible for implementing precautionary measures to protect the property and people involved.

These measures may include securing sites, setting up temporary protective devices, or responding quickly to prevent further damage.

Results

By combining the skills and expertise of its various entities, the Stelliant Group has been able to provide comprehensive services tailored to specific needs, ensuring an efficient implementation that meets the expectations of customers.

• Implementing a crisis management process to record reported claims and provide qualified specialists.
• Ensuring relationships with affected clients and controlling the communication of all types of information.
• Decontamination, cleaning, deoxidation of the disaster site and fire investigations
  100% of the files for the 1,000 houses examined in 1 month, restarting the work in progress.