What are the benefits for the entrepreneur of entering into a simplified company restructuring process and why entrepreneurs fear it

Dozens of restructuring proceedings carried out and many hours of deliberation with entrepreneurs have enabled the law firm PMR Restrukturyzacje S.A. to develop a list of benefits of entering the simplified restructuring process:

1. Maintaining control of the financial situation:

Simplified restructuring allows the company to deal with its financial problems in a professional and courageous manner and maintain control of the situation. We stop 'burying our head in the sand';

2. avoiding bankruptcy:

Effective restructuring is the solution to avoid formal bankruptcy of the company, which in turn minimises the negative effects on the company's owners, employees, contractors as well as shareholders;

3. negotiations with creditors:

The restructuring process enables negotiations with creditors to find sustainable solutions, such as debt reduction and restructuring of repayment terms;

4. Preserving shareholder value:

Avoiding formal bankruptcy preserves shareholder, shareholder value, which shows that we can face up to the problem. Crisis management requires boards/owners/representatives to take a broader view and make bold decisions;

5. protecting jobs:

Simplified restructuring affects the cost structure which helps to preserve jobs by reducing operating costs and improving efficiency;

6 Accelerating the restructuring process:

Simplifying the process allows action to be taken more quickly, which is important for companies in crisis. Although we talk about simplified restructuring, let us remember that we are using the colloquial name of proceedings for the approval of an arrangement. It is a quick process that allows us to de-escalate a crisis situation and then regain time to get the company back on track;

7. rebuilding stakeholder/customer/contractor confidence

Successful restructuring can contribute to rebuilding trust among stakeholders, including customers, suppliers and investors. Clear, efficient communication, the presentation of crisis areas and upcoming changes to the existing business, the presentation of repayment options to satisfy creditors while achieving the goal of the restructuring procedure of avoiding company bankruptcy is a message that builds trust and paves the way for further cooperation in the future;

8 Adjustment of cost structure:

Focus on eliminating excessive costs and aligning the cost structure with the company's actual financial capabilities;

9. minimise loss of brand value:

Avoiding formal bankruptcy and effective restructuring can help to minimise the negative impact on a company's brand value;

10. Opening the door to further cooperation and development

Successfully managing the restructuring process can open the door to further collaboration with suppliers, business partners and customers;

11. Finally, the achievement of THE PURPOSE OF RESTRUCTURING - TO RETURN TO EFFICIENT COMPETITION ON THE MARKET.

Experience shows. How important it is to act in crisis situations. So why are Entrepreneurs afraid of simplified restructuring?

1. lack of control: The restructuring process requires some changes. Entrepreneurs may be concerned about losing control of the company and introducing new rules and processes. NOTHING COULD BE FURTHER FROM THE TRUTH it is the entrepreneur who continues to manage his company;

2. uncertainty: Simplified restructuring can lead to a degree of uncertainty about the effects of these changes on the future of the company. This can cause concern and resistance. Here, all that is needed is analysis and good restructuring advice to understand the process;

3 Cost and time: The restructuring process can be costly and time-consuming, which can discourage entrepreneurs. The costs of simplified restructuring are the lowest of all other costs in terms of protecting the company, assets and are set by law;

4 Staff reactions: Simplistic restructuring can provoke resistance among employees, and entrepreneurs fear a loss of team motivation and commitment.

Here, it is important to communicate efficiently with the restructuring advisor and mediator, who will convey that it is only by implementing restructuring that we will achieve stability and have a chance of developing the company and maintaining jobs;

5. risk of change: Any change in an organisation carries certain risks. Entrepreneurs may fear that a simplified restructuring will not bring the expected benefits or that they are not fully aware of the process. Here, it is important to select an experienced restructuring law firm that will guide the entrepreneur step by step through hitherto unknown areas;

It is worth noting that simplified restructuring in a crisis situation is essential in order to keep the company on the market, avoid bankruptcy and ultimately improve the company's efficiency and competitiveness, so it is important to properly prepare and plan for this process.