Trade situation stabilises despite rise in bankruptcies

According to international credit insurer Coface in its 2018 report on insolvency and restructuring of companies in Poland, an increasing number of companies at risk of insolvency are attempting to recover. Although the overall number of insolvencies and restructurings is increasing (up 10 per cent in 2018 compared to the previous year), the number of restructurings is also increasing significantly compared to previous years. The proportions of bankruptcies to arrangements and sanctions are also changing - in favour of rescuing companies - (57 and 43 per cent respectively).

Since the introduction of the new restructuring law in 2016, the number of company insolvencies is at all times below the level before the law changes - in 2014 it was 701, in 2015. - 650, and in 2018 - 558.

– Po trzech latach działania nowego prawa upadłościowego i restrukturyzacyjnego możemy powiedzieć, że znacząco rośnie liczba firm, które podejmują próby ratowania swoich biznesów
– komentuje wyniki Coface Małgorzata Anisimowicz, prezes PMR Restrukturyzacje SA.– Najlepsze efekty osiągane są w przyspieszonych postępowaniach układowych (kwestia szybkości działania) i postępowaniach sanacyjnych (czas niezbędny do wdrożenia środków restrukturyzacyjnych i przywrócenia restrukturyzowanej firmie możliwości konkurowania na rynku). To wskazuje, że czas jest niezwykle ważnym elementem w przeprowadzeniu restrukturyzacji i w ratowaniu firm stanowi obok środków finansowych najistotniejszy składnik sukcesu. Przedłużająca się sytuacja kryzysowa nie pozwala na wdrożenie zmian, a wiara w firmę, zarówno wśród klientów, kontrahentów, jak i pracowników, zmniejsza się z czasem
- adds Malgorzata Anisimowicz.

Although the number of company insolvencies in 2018 increased compared to the previous year (from 537 to 558), it is still well below the level from before the new bankruptcy and restructuring law came into force in January 2016. As many as 417 companies attempted restructuring in 2018, a marked increase from 348 in 2017.

Most frequently, companies applied to the courts for accelerated arrangement proceedings - 259 (an increase of 24 per cent compared to the previous year). In contrast, the number of sanction proceedings is growing most dynamically - 88 (up 30 per cent compared to 2017).

Although both trade and manufacturing saw a 7 per cent increase in insolvencies in 2018 compared to 2017, the situation in these industries is stabilising. The same is true of construction, which saw a 4 per cent increase, but the situation of many companies, especially those directly involved in the production or sale of building materials, has improved significantly. The industry experiencing the deepest crisis is transport - the 40 per cent increase in the number of insolvencies of transport companies indicates that most companies are in a deep crisis.

The material appeared on the dlahandlu.pl website:

23 January 2019:
" Despite rise in insolvencies, trade situation stabilises