Simplified restructuring path to survive

There will be another record of bankruptcies this year, but many companies will be saved by restructuring
The simplified restructuring procedure introduced in June 2020 into the legal order for the period until 30 November 2021 as part of Crisis Shield 4.0 has been operating as an improved arrangement approval procedure since today. It has remained because it worked well during the pandemic economic collapse.
Last year, there were 356 such proceedings. In the first quarter of this year, more than 350 companies out of 515 insolvencies opted for arrangement proceedings. In the second quarter, their number rose to 795 out of 1,175 total insolvencies, and in the third quarter they already exceeded 1,200 (out of 1,841 companies), according to Coface data. Thus, their share reaches 66-68 per cent, depending on the quarter. By comparison, there were 178 ordinary arrangement proceedings between January and September this year.
Experts are convinced that the number of cases will increase in the last quarter and in the following months. – According to our forecasts, we can expect up to 3,000 restructuring processes to be initiated in Poland in the whole of 2021 – says Małgorzata Anisimowicz, CEO of PMR Restrukturyzacje, adding that their final number will largely depend on fourth wave coronavirus pandemic and the introduction of further restrictions for entrepreneurs. If they were not there, then we could expect about 100 new proceedings per month. Although, according to information from the Central Economic Information Center, as many as 266 new proceedings were opened in June.

Publication on the Dziennik Gazeta Prawna website with expert commentary by Małgorzata Anisimowicz, President of the Management Board of PMR Restructuring and qualified restructuring advisor.

The article appeared in Dziennik Gazeta Prawna, 01 December 2021. We invite you to read the full version:"The simplified restructuring path will allow the survival of the

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