Year after year, dozens of companies in Poland run into financial trouble. Loss of financial liquidity is the most common cause of bankruptcy – hundreds of companies across the country find themselves in such a situation every year. However, the problem is only noticed when the company reaches insolvency, when the account companies shine empty, employees and contractors are demanding overdue payments. So far, the scenario ended bankruptcy petition and taking over the bankruptcy estate by a licensed trustee. From January 2016, with the entry into force of the new Restructuring Law, this will change. Does this also mean end of demand for trustees' services?
Lack of liquidity does not mean bankruptcy
Often the case is not as lost as it seems. A properly conducted process company restructuring, is able to save the company. Unfortunately, few entrepreneurs in crisis are able to talk about their problems with creditors, formulating solutions that are attractive to them. In such a situation, help comes not from the trustee, but from a restructuring advisor - a specialist, whose task is to conduct a process of changes in the company, which will allow to satisfy the debt to creditors and release the entrepreneur from obligations. A specialized expert, familiar with the nuances of law, will be able to effectively assess the existing factual situation, the possibilities of reconstruction, reduction or transformation of the company, and will also know how and from what source to obtain funds to save the company. Experience and deep knowledge of legal possibilities are the basis on which advisors restructuring will build their confidence in the market.
Experience and knowledge of new regulations will verify the supply of restructuring consulting services
Of course, creditors are not the only concern of an entrepreneur. Bankruptcy also affects employees and complicates matters with the tax office. However, hiring a specialist, a person who knows how to act, where to go first, where to get financial resources, in which state agencies you can seek help and what help you can get will be able to conduct a quick and effective restructuring. A person who does not operate in this area, does not know the procedures and the applicable law will not be as effective as a reputable advisor.
Year after year, dozens of companies in Poland fall into financial difficulties. Loss of financial liquidity is the most common cause of bankruptcy - hundreds of companies across the country find themselves in such a situation every year. However, the problem is noticed only when the company reaches the state of insolvency, when the company's account is empty, and employees and contractors demand payment of overdue receivables. So far, the scenario ended bankruptcy petition and the takeover of the bankruptcy estate by a licensed trustee. From January 2016, with the entry into force of the new Restructuring Law, this will change. Does this also mean the end of demand for the services of trustees?
Lack of liquidity does not mean bankruptcy
Often the case is not as lost as it seems. A properly conducted process company restructuring, is able to save the company. Unfortunately, few entrepreneurs in crisis are able to talk about their problems with creditors, formulating solutions that are attractive to them. In such a situation, the help comes not from the trustee, but from a restructuring advisor-a specialist, whose task is to conduct the process of changes in the company, which will allow the debt to be satisfied by creditors and free the entrepreneur from obligations. A specialized expert, familiar with the nuances of law, will be able to effectively assess the actual state of affairs, the possibilities of restructuring, reduction or transformation of the company, and will also know how and from what source to obtain funds to save the company. Experience and deep knowledge of legal possibilities are the basis on which restructuring advisors will build their trust in the market.
Experience and knowledge of new regulations will verify the supply of restructuring consulting services
Of course, creditors are not the only concern of an entrepreneur. Possible bankruptcy also affects employees and complicates matters with the tax office. However, hiring a specialist, a person who knows how to act, where to go first, where to get financial resources, in which state agencies one can seek help and what kind of help can be obtained, will be able to carry out fast and effective restructuring. A person who does not operate in this area, does not know the procedures and the applicable law will not be as effective as a reputable advisor.
Małgorzata Anisimowicz
Restructuring advisor, licensed receiver, expert witness
Vice-President PMR Restructuring ARE
Co-founder of the National Chamber of Syndics and President of the Regional Chamber of Syndics in Wrocław.
Expert comment:
The entry into force of the new Restructuring Law will expand the scope of services provided by trustees, who, in addition to taking over the bankruptcy estate, will also have at their disposal tools for effectively saving companies. However, the new regulation will verify the competences of people with a trustee license, which means that not all licensed ones will advise on matters restructuring. Two trends are currently noticeable in the trustee community: some people do not want, do not intend to or do not feel capable of performing the functions of a restructuring advisor upon the entry into force of the Act.
It is positive that a significant number of persons with a syndicates' licence, already at the initial stage of work on the Act, noticed the need to improve their own qualifications. The National Chamber of Syndics has been taking action for a long time, conducting cyclical training of its members to this end. It is worth pointing out that a restructuring adviser is a person who is a manager, a specialist in the legal environment, an economist , an analyst and a financial adviser, so the question arises here as to whether, for example, lawyers with a receiver's licence are sufficiently competent?
A special condition of the new Restructuring Law is to enable the entrepreneur to independently choose a restructuring advisor. Therefore, for the most part, it is the market, not the court, that will verify the competences restructuring advisers. So the question arises where to find a competent restructuring advisor. Right now, we have several professional restructuring advisory firms on the market, where it is worth looking for specialists. It is worth paying attention to choosing an advisor who will offer services not only in the field of consulting, but also implementation and carrying out the restructuring process.
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PMR Restructuring is a consulting company specializing in restructuring of enterprises. It carries out processes restructuring, composition and restructuring proceedings in the enforcement of corporate income.
