Atlantica bankruptcy - expert comment

Atlantic, like other liquidated companies, could have avoided bankruptcy. The opportunity lies in restructuring and a professional recovery plan, moreover presented at the first symptoms of the crisis and not in its last phase.

In the case of Atlantica, the Bankruptcy Court did not give credence to the restructuring architecture presented. Thus, the economic aspect and the lack of a credible recovery plan failed.

A successful restructuring proposal requires an in-depth audit of the company and its condition. The turnaround plan made on this basis must identify critical points and problematic risk zones so that, in addition to the company's recovery path, it protects the company from further crises. Most importantly, the plan should be formulated and submitted as early as possible, when there is a realistic chance of judicial protection for the restructuring.

Atlantica's case is not lost. In the course of the bankruptcy, the option can be changed from liquidation to arrangement. The trustee will also attempt to sell the business as a whole - so the chances are that only the company will be liquidated.

Nowa Ustawa Prawo Restrukturyzacyjne wprowadza prymat restrukturyzacji nad upadłością, dlatego jest szansą dla firm w podobnej sytuacji. Ustawa przewiduje układ częściowy, a więc Atlantic mógłby zaproponować układ jedynie z tymi wierzycielami, z którymi się porozumiał. Rozwiązałoby to problem m.in. z pracownikami. Postępowanie sanacyjne pozwoliłoby na głęboką restrukturyzację, a prepack (czyli przygotowana likwidacja) dałby szansę na sprzedaż w całości przedsiębiorstwa.

The material appeared on the website:

31 August 2015:
" Expert on Atlantic's bankruptcy: Poland's liquidation culture won out