Syndics out of work. Restructuring consultants are entering the market. Will they save failing companies?

Year after year, dozens of companies in Poland get into financial trouble. Loss of financial liquidity is the most common cause of bankruptcy - hundreds of companies throughout the country find themselves in this situation every year. However, the problem is only noticed when the company reaches the state of insolvency, when the company's account is empty, while employees and contractors demand payment of outstanding receivables. Until now, the scenario has ended with a bankruptcy petition and a licensed receiver taking over the bankruptcy estate. From January 2016, with the entry into force of the new Restructuring Law, this will change. Does this also mean the end of demand for the services of receivers?

Lack of liquidity does not mean bankruptcy
Often the case is not as much of a lost cause as it seems. A properly conducted restructuring process of the company, is able to save the enterprise. Unfortunately, few entrepreneurs in crisis are able to discuss their problems with creditors, formulating solutions attractive to them. What comes to the rescue in such a situation is not a receiver, but a restructuring advisor, whose task is to conduct a process of changes in the company, which will make it possible to satisfy debts to creditors and release the entrepreneur from liabilities. A specialised expert, familiar with the legal nuances, will be able to effectively assess the existing state of affairs, the possibility of reconstruction, reduction or transformation of the company, and will know how and from what source to obtain funds for saving the company. Experience and deep knowledge of the legal possibilities are the basis on which restructuring advisors will build their confidence in the market.

Experience and knowledge of new regulations will verify the supply of restructuring consulting services
Of course, creditors are not the only concern of the entrepreneur. Possible bankruptcy also hits employees and complicates matters with the tax authorities. However, hiring a professional, a person who has an idea of how to act, where to go first, where to get funds from, in which state agencies to look for help and what help can be obtained, will be able to carry out a quick and effective restructuring. A person who does not move in this sphere, does not know the procedures and the applicable law will not be as effective as a reputable advisor.

Rok w rok, dziesiątki firm w Polsce wpada w financial difficulties. Utrata płynności finansowej to najczęstsza przyczyna upadłości – w takiej sytuacji znajdują się każdego roku setki firm na terenie całego kraju. Problem dostrzegany jest jednak dopiero wtedy, kiedy przedsiębiorstwo osiąga stan niewypłacalności, kiedy rachunek firmy świeci pustkami, pracownicy i kontrahenci zaś domagają się zaległej wypłaty należności. Dotychczas scenariusz kończył się wnioskiem o upadłość i przejęciem masy upadłościowej przez licencjonowanego syndyka. Od stycznia 2016 roku, wraz z wejściem w życie nowego Prawa Restrukturyzacyjnego to się zmieni. Czy to oznacza też koniec popytu na usługi syndyków?

Lack of liquidity does not mean bankruptcy
Often the case is not as much of a lost cause as it seems. A properly conducted restructuring process of the company, is able to save the enterprise. Unfortunately, few entrepreneurs in crisis are able to discuss their problems with creditors, formulating solutions attractive to them. What comes to the rescue in such a situation is not a receiver, but a restructuring advisor, whose task is to conduct a process of changes in the company, which will make it possible to satisfy debts to creditors and release the entrepreneur from liabilities. A specialised expert, familiar with the legal nuances, will be able to effectively assess the existing state of affairs, the possibility of reconstruction, reduction or transformation of the company, and will know how and from what source to obtain funds for saving the company. Experience and deep knowledge of the legal possibilities are the basis on which restructuring advisors will build their confidence in the market.

Experience and knowledge of new regulations will verify the supply of restructuring consulting services
Of course, creditors are not the only concern of the entrepreneur. Possible bankruptcy also hits employees and complicates matters with the tax authorities. However, hiring a professional, a person who has an idea of how to act, where to go first, where to get funds from, in which state agencies to look for help and what help can be obtained, will be able to carry out a quick and effective restructuring. A person who does not move in this sphere, does not know the procedures and the applicable law will not be as effective as a reputable advisor.

Małgorzata Anisimowicz
Restructuring advisor, licensed receiver, expert witness
Vice President of PMR Restructuring S.A.
Co-founder of the National Chamber of Syndics and President of the Regional Chamber of Syndics in Wrocław.

Expert comment:
The entry into force of the new Restructuring Law will expand the services of receivers, who, in addition to taking over the bankruptcy estate, will also have the tools to effectively rescue companies. Nonetheless, the new regulation will verify the competence of receivership licence holders, which means that not everyone with a licence will be advising on restructuring. Two trends are currently being noticed in the receivership community, some people do not want to, do not intend to or do not feel able to perform the functions of a restructuring advisor, once the law comes into force.

It is positive that a significant number of persons with a syndicates' licence, already at the initial stage of work on the Act, noticed the need to improve their own qualifications. The National Chamber of Syndics has been taking action for a long time, conducting cyclical training of its members to this end. It is worth pointing out that a restructuring adviser is a person who is a manager, a specialist in the legal environment, an economist , an analyst and a financial adviser, so the question arises here as to whether, for example, lawyers with a receiver's licence are sufficiently competent?

Szczególnym uwarunkowaniem nowej ustawy Prawo Restrukturyzacyjne jest umożliwienie przedsiębiorcy samodzielnego wyboru doradcy restrukturyzacyjnego. Zatem w przeważającej części to rynek, a nie sąd weryfikował będzie kompetencje doradców restrukturyzacyjnych. Rodzi się więc pytanie gdzie znaleźć kompetentnego doradcę restrukturyzacyjnego. Już w tej chwili mamy na rynku kilka profesjonalnych kancelarii doradztwa restrukturyzacyjnego, w których warto szukać specjalistów. Warto przy tym zwrócić uwagę, aby wybrać doradcę który zaoferuje usługi nie tylko w zakresie doradztwa, ale również wdrożenia i przeprowadzenia procesu restrukturyzacyjnego.

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PMR Restructuring is a consultancy firm specialising in corporate restructuring. It implements restructuring, arrangement and resolution processes in the enforcement of corporate income.