Companies reach for restructuring tools

In this era of fighting pandemonium, maintaining liquidity is becoming a priority for companies. Restructuring law is therefore steadily gaining in importance, providing managers with the tools to anticipate risks and develop the necessary procedures in advance.

With the pandemic still unknown, the future of companies remains uncertain and at high risk. In the face of falling revenues and the need to settle liabilities, companies are under pressure to liquidate jobs and the specter of bankruptcy. Managers are already facing an urgent the challenge of developing business protection tools and action scenarios.

– The opening of restructuring proceedings enables the company to suspend enforcement proceedings, due payments and current liabilities, but also paves the way for the introduction changes in order to conclude an agreement with creditors. By using the tools provided by the restructuring law, managers can adapt the company's operations to the rapidly changing reality - says Małgorzata Anisimowicz, President of the Management Board of PMR Restructuring and adds that restructuring proceedings are a real alternative to bankruptcy. - It is its opposite, because it gives the company the possibility of rescue. Therefore, in the coming months it will be increasingly used – Anisimowicz predicts.

Taking advantage of opportunities

After initiating the procedure restructuring of the company they can withdraw from toxic contracts without incurring significant costs and protect the management against personal liability for the company's obligations. Restructuring law offers many other tools and new opportunities that are helpful to the company. However, without the help of a specialist who not only knows the regulations but also has experience in applying them, it is difficult to apply them correctly. Especially since the company's situation must first be examined in terms of legal requirements and its needs must be determined.

– Basic knowledge of management boards in the field of restructuring, awareness of the variants of restructuring activities, including taking into account their time-consuming nature, facilitates the preparation companies to use any possibilities resulting from the restructuring law. However, this is not enough. Only cooperation with an advisor guarantees success - emphasizes Małgorzata Anisimowicz.

The material appeared in the daily newspaper Puls Biznesu:24 April 2020. We invite you to read the full article:" Companies reach for restructuring tools

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