More and more companies are struggling to repay their PGE


“Many companies do not have enough income to repay all their debts”notes Timothée Gagnepain, associate lawyer at McDermott Will & Emery. 450926812/insta_photos - stock.adobe.com

They are weakened by inflation and the lengthening of payment terms.

This is an emerging trend that is beginning to cause concern. "A lot of companies are struggling to repay their EMP(loan guaranteed by the State, editor's note)», observes Timothée Gagnepain, associate lawyer at McDermott Will & Emery. A large number of these PGEs, created in 2020 to help companies get through the health crisis, are reimbursable from 2022. Until now, the public authorities wanted to be reassuring, indicating that very few beneficiaries (4.6% in July) would encounter reimbursement problems.

But the situation is changing. Many companies do not have enough income to repay all their debts, which for merchants also include rents due during the pandemic, in arrears”, notes Timothée Gagnepain.

Many of these companies are penalized by soaring raw material and energy costs that they cannot always pass on to their customers. Others suffer in addition to the imbalance of the chains…

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