Sanitation proceedings a riposte to the crisis

Why are companies increasingly choosing to sanction their operations? It gives companies the widest range of protection available against creditors, as well as the largest number of legal instruments dedicated to operational and financial restructuring. Once sanctioning proceedings have been opened, no creditor can conduct enforcement proceedings.

According to Anna Maria Pukszto of Dentons, the number of sanctions proceedings on the trading floor will increase. Entities whose shares are traded by investors, just like any other company, are exposed to the downturn or the often debatable opinions of the tax authorities.

Take to calm waters
The opening of sanction proceedings in Action is a response precisely to the decisions issued by the tax authorities, which are, in the opinion of the IT distributor's management, unfair.

Hawe is at a different stage. At the request of the company's administrator, the sanitation proceedings were discontinued by the court. The administrator claims that the sanction has no chance of success in the case of this company. The management board of the fibre optic company takes a different view. It disagrees with the court decision and intends to file a complaint.

The situation is even different at Kerdos. The law firm PMR Restrukturyzacje, which is the administrator in the sanctioning proceedings of this company, has submitted an inventory of the company's debts to the commissioning judge.

It hopes that the Dayli drugstore chain, which is owned by Kerdos, will be able to move out into calm waters thanks to, among other things, a reduction in operating costs.

Bankruptcy will not be
Baltic Ceramics and LZMO - part of the industrial holding company IndigoTech Minerals, whose shares are listed on the regulated market - are also in trouble. LZMO is unable to service its bonded debt, while Baltic is counting on protection from the suppliers it wants to repay, but is seeking to spread the liabilities over time. - We are awaiting the opening of sanitation proceedings. Indigo is not in danger of bankruptcy," assures Dariusz Janus, president of IndigoTech Minerals.

Opinion
Anna Maria Pukszto, legal advisor, Dentons No doubt we can expect more sanction proceedings of listed companies. Listed companies, like all entrepreneurs, are exposed to the negative impact of phenomena and events such as economic downturn, changes on the currency market, limited access to cheap sources of financing, embargoes, regulatory changes introducing new restrictions for a specific sector (here the example of wind farms may be referred to). On an individual level, the source of financial problems is not necessarily only business failures, but also specific events such as lost lawsuits, imposed administrative fines or tax refund decisions.

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21 August 2016:
" Sanitation a riposte to the crisis