Published by Global Banking & Finance Review®
Posted on September 29, 2025
2 min readLast updated: January 21, 2026
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Carmat's liquidation is highly probable after a failed takeover bid. Shareholders may lose their entire investment, and trading is suspended.
(Reuters) -Carmat now deemed it "extremely probable" a French court would conclude its liquidation after a takeover bid by the company's chairman fell through as he failed to secure funding, it said on Monday.
WHY IT'S IMPORTANT
The collapse of the French company would mark the end of one of the bigger companies worldwide that produce and design artificial hearts.
KEY QUOTES
"At this stage, it is thus now extremely probable that the Bid will lapse on September 30, 2025, and that the Court will, in the very short term, decide the liquidation of the Company, which operations will then stop," the company said in a news release.
"It is highly probable that the shareholders will lose the total value of their investment, while a major part of Carmat's creditors will incur a very significant loss."
CONTEXT
Carmat filed for insolvency in June after failing to raise emergency funds and requested receivership from the Versailles Economic Court.
Analysts had speculated that a takeover by an industrial player or financial partner could save the company, though its significant liabilities made government intervention unlikely.
Trading in Carmat shares remains suspended.
(Reporting by Jakob Van CalsterEditing by Tomasz Janowski)
Liquidation is the process of winding up a company, where its assets are sold off to pay creditors and shareholders, often resulting in the company's closure.
Creditors are individuals or institutions that lend money or extend credit to a company, expecting repayment of the principal amount along with interest.
Insolvency is a financial state where an individual or organization can no longer meet its debt obligations as they come due.
A takeover bid is an offer made by an individual or company to purchase another company, typically at a specified price per share.
A shareholder is an individual or institution that owns shares in a company, representing a claim on part of the company's assets and earnings.
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