Gauzy stock plummets after French subsidiaries enter insolvency

Investing.com -- Gauzy Ltd. (NASDAQ:GAUZ) stock plunged 48.5% in premarket trading Friday after the vision and light control technologies company disclosed that three of its French subsidiaries have entered insolvency proceedings.

The Tel Aviv-based firm announced that the Commercial Court of Lyon, France ordered the commencement of "Redressement Judiciaire" (judicial reorganization) for its three French subsidiaries on November 13. As a result, the company has postponed the release of its third quarter 2025 financial results that were scheduled for November 14.

Gauzy stated that it "strongly disagrees" with the French court’s ruling and plans to appeal the decision "as soon as possible." The company indicated it is working with court-appointed administrators to resolve the matter while maintaining normal business operations.

"Over the last three and a half years Gauzy has invested over $50 million in our people, assets, and operations in France. We fundamentally disagree with this decision, which we believe is unwarranted," said Eyal Peso, Co-founder and CEO of Gauzy.

The French insolvency proceedings, known as Redressement Judiciaire, aim to preserve business operations, maintain employment, and repay creditors while enabling company recovery. Despite the planned appeal, the proceedings will continue pending a decision from the Court of Appeal of Lyon.

Gauzy noted that it is currently working to ensure its subsidiaries have sufficient financial resources to meet their debts as they become due. The company promised to provide updates on the proceedings as more information becomes available.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.