In addition to the lengthiness of proceedings and the lack of funding, the restructuring provisions have another drawback - they do not ensure the remuneration of administrators.
A second chance for almost every entrepreneur, and bankruptcy only as a last resort - this is how the restructuring law, which came into force at the beginning of 2016, was supposed to work. What can be seen after more than two years? Even though companies are eager to get into recovery, most such processes end in bankruptcy anyway.
No money, no go
Andrzej Glowacki, restructuring advisor, analyzed several cases of corporate recovery that his company had dealt with in the last two years. They aptly show the difficult reality of restructuring. Out of a dozen or so proceedings conducted, only one ended with an arrangement with creditors. Reasons? One of them is the need to have cash. Each restructured the company had a problem with a lack of working capital, and obtaining it would be a solution and would get the company back on its feet.
The entities filing the application to open the proceedings were drained of money as a result of systematically generating negative financial results or mismanagement, claims Andrzej Głowacki. In his opinion, none restructuring has no chance of success if it is not supported by external financing. And despite the fact that there is a general ban on terminating lease or tenancy agreements and any other agreements on the basis of which financing was granted to the debtor, in most cases the cash flow is still severely limited by the financiers when the company decides to repair.
He adds that the provision allowing for privileges is helpful. creditors supporting the restructuring process by granting them more favorable terms of the arrangement, which is a departure from the principle of equal treatment of all to whom the debtor owes something. But this may also not be enough.
15 May 2018:
" Company doctors work without a guarantee of payment
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