With more than a year of hindsight since their implementation,
we now can see that a multiplication of aid schemes linked to the
COVID-19 pandemic creates various unexpected legal problems. We
provide here a brief overview that is neither exhaustive nor
definitive.
The obligation to refund public aids in certain cases: a
potential burden in the event of bankruptcy
Many aid schemes include in their conditions the obligation to
repay the aid in the event of the transfer of the business,
liquidation or bankruptcy of the recipient company. Thus, the aid
granted is far from being definitively acquired.
Although the context is particular, all companies are still
required to declare bankruptcy within one month of the cessation of
payments. However, one should not be fooled: with the various aids
granted and the official or tacit moratoria on bankruptcy, many
companies are today in a virtual state of bankruptcy and should
have already filed for bankruptcy to comply with
