2.III.2.1. The applicant is not involved in bankruptcy proceedings

If the applicant is involved in any bankruptcy or liquidation proceedings, the financial solvency criterion defined in Article 39(c) of the CAU and Article 26(1) of the AE CAU is not met.

If the applicant is involved in any type of insolvency proceedings, compliance with the above criterion must be further examined, for example through the controlled administration of a third party appointed by the court. Information will need to be gathered on the circumstances that led to the initiation of the proceedings (economic recession, bankruptcy of subsidiaries, temporary and unexpected changes in market trends), as well as on the amounts owed. The amounts owed can be compared with the amount of the applicant's different types of assets, for example, current assets (cash and other cash equivalents, including receivables, that can be converted into cash within one year at the latest), long-term assets (tangible fixed assets and other capital assets, less depreciation), intangible assets (assets with a defined value but not realizable, such as goodwill, patents, copyrights and brand recognition) and prepaid and deferred assets (expenses in anticipation of future costs, such as insurance, interest and rent).