It is not worth waiting before taking action

The law gives the entrepreneur a choice of different restructuring paths. The selection is best guided by the phase of crisis the company is in.

Success in business has a sleep-inducing effect — companies expand their internal structures and lose the ability to respond quickly to market changes. The loss of key contractors or an unexpected economic reversal mean that a company is unable to effectively respond to the challenges it faces. This type of inertia can, in the long run, become a threat to the company's continued presence on the market. How to heal the company in such a situation? The solution is restructuringThe Restructuring Law in force since the beginning of 2016 introduced a clear separation restructuring proceedings from bankruptcy.

— It is important that each of these proceedings may be initiated by both an insolvent entrepreneur and one who is only threatened by insolvency. The legislator allows entrepreneurs to take advantage of various restructuring options depending on the phase of the crisis in which it is located — points out Małgorzata Anisimowicz, President of the Management Board of PMR Restrukturyzacje.

A real rescue

If the company has not yet lost its liquidity and the ability to settle its liabilities, which could be a reason to declare bankruptcy, then the best solution for it is to start restructuring process. Its generally defined the goal is to heal the company, i.e. restoring business effectiveness, competitiveness and regaining the quality of the services it offers or the products it sells. Initiation restructuring by the company also protects the interests of its creditors.
— Prevents uncontrolled sale of assets, their removal or transfer. Allows for equal opportunities for creditors, eliminates aggressive debt collection. An application to initiate restructuring proceedings may also be submitted by a creditor. - explains Malgorzata Anisimowicz.
The announcement of restructuring makes a company in crisis comes under the protection of the law that protects its key interests. What? Restructuring law lists facilitating the company's access to public aid, new financing options, protection of key contracts for the company, protection against aggressive debt collection, the possibility of suspending enforcement proceedings, protection of board members against personal liability, employment restructuring and company support by restructuring advisors, including experts in finance, accounting and taxes.

Don't waste time

When the company is experiencing a crisis and there are no easy ways to prevent further progress of this process, it is not worth waiting. Restructuring announced as early as possible gives a real chance to overcome difficulties. The key to the effectiveness of the actions taken is time and the selection of the optimal repair procedure, adequate to the existing problems.

- Time is a resource that cannot be replaced by anything. The correct design of the architecture of the measures taken, which depends on the moment at which they are implemented, has a fundamental impact on the effectiveness of corrective actions, advises Małgorzata Anisimowicz.

The material appeared in the daily newspaper Puls Biznesu:9 October 2019:" It is not worth waiting to take action

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