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YuuZoo subsidiary initiates judicial recovery proceedings in France
YUUZOO Networks Group, formerly known as YuuZoo Corp, said on Thursday that it had instructed the management of YuuLog France to initiate judicial recovery proceedings in the French courts, notwithstanding that the subsidiary is still solvent.
YuuZoo said in a statement: "YuuLog France’s operations has been negatively impacted by the loss of several major customers."
YuuZoo did not explain why the major customers were lost.
It said: "Due to the competitive market conditions in the logistics business, YuuLog France was unable to secure sufficient new customers to compensate for the loss of business from its major customers."
YuuLog France had requested that YuuZoo make a cash injection to support its quickly deteriorating cashflow since July.
However, trading in YuuZoo’s shares has been suspended since March 19, limiting its fundraising opportunities.
YuuZoo was advised by its French lawyers that the best option is for YuuLog France to initiate judicial recovery proceedings.
The date of judgment opening the proceedings was Aug 28, and YuuLog France is now in a six-month observation period, during which the judicial administrator will assess its financial position and assist in its management.