French MTB maker Sunn is in the preliminary stage of insolvency. The company lodged a 'bilan' on Monday. This is an assessment of debts and liabilities issued to a tribunal, a precursor to full insolvency. A 'bilan' is similar to the US Chapter 11 process: debts and interest charges are frozen in order for a rescue package to be assembled.
Jacques Riba, one of the Sunn's primary shareholders, has given up his claim to the company's debt.
A rescue package needs to be in place within the next 60 days.
Sunn, founded in 1989, employs 50 people from a factory at Saint-Gaudens, in the shadow of the Pyrénées, 65 miles from Toulouse.