Advanced Vision Morocco is in cessation of payment. Once coveted by TGCC, the subsidiary of CPC Construction Products International Ltd (Saudi group Binladin) has been placed in receivership by the Casablanca commercial court.
Dating from April 12, the judgment has not yet been published in the Official Bulletin. It follows the request filed by the company itself, the result of the difficulties accumulated over the past two years.
In Morocco, AVM has been active since 2014 in the markets for the supply of electrical and HVAC engineering services. It operates specifically in “the operation of electrical and electromechanical sites and construction works”. Its main clients are entities such as the National Airports Office, OCP or Casablanca Finance City.
The company, which employs 252 employees (+500 temporary employees), reached its peak in 2016, the year during which it will reach 457 MDH in turnover. This is followed by a decline in results, punctuated over the past two years by losses that AVM mainly attributes to bad-paying customers.
The situation has impacted its financial balance and accentuated its debt. It was amplified by the pandemic and the accumulation of administrative hassle, linked to a definitive handover of work in “important sites”. Hence the financial imbalances that have accentuated the company’s indebtedness, currently estimated at nearly 150 million dirhams, according to data provided to the court.
Business in trouble, but alive
In its judgment, the commercial court finds that AVM is still carrying on its business, but is unable to honor its commitments to creditors. Its available assets do not cover its payable liabilities, an accounting translation of the cessation of payment.
Nevertheless, the company “preserves its capital”, while asserting positive equity (99 MDH) as well as significant assets (52 MDH). Basically, his “situation is not irreparably compromised”, slice the collegiate formation chaired by judge Abderrafii Bouhamria. Way to sweep the argument of a creditor who came to claim, during the trial, the liquidation of AVM.
The company is the subject of numerous legal actions, including several initiated by banking establishments. The reorganization judgment short-circuits all these actions, including seizures, which will be suspended until the court fixes a solution to AVM’s difficulties. That is, among other things, the adoption of a plan of continuation.
The company’s management claims that these difficulties are “passengers” and that it is able to settle all of its debts in four years, subject to collecting its own debts. The continuation plan, if validated, could be spread over a maximum period of ten years.
TGCC nearly bought AVM
The solution may also consist of an assignment to third parties. Provided for by the Commercial Code, this outcome was considered before the reorganization judgment. With as a candidate a large Moroccan construction group, General Construction Works of Casablanca (TGCC).
In search of diversification, the company headed by Mohammed Bouzouba had made an offer of 110 million dirhams for the acquisition of exclusive control of AVM. A letter of intent was signed on March 29, 2021 with the Saudi parent company (CPC). The merger project was even notified to the Competition Council, which gave its authorization in October 2021 (decision published in the BO of November 8, 2021).
Finally abandoned, the operation was to allow TGCC to develop its activity by relying on “the technical expertise of the target establishment and its qualified human resources in the fields of electrical engineering, air conditioning and heat”. .
“Four or five months ago, we carried out accounting and technical due diligence. We discovered the real scope of AVM’s difficulties, which led us to abandon this track, ”says a source at TGCC, contacted by Médias24.