I want to conduct simplified restructuring proceedings 🎬

You are interested in the procedure for the approval of an arrangement - no wonder - it is the most common form of restructuring chosen by more than 92% of all restructured companies in 2023.

The Approval of Arrangement procedure popularly known as simplified restructuring is the fastest, cheapest and safest solution for companies facing difficulties.

First - it is the Entrepreneur who decides when the proceedings will be opened (court approval is not required). If the need arises, it is even possible to open on the same day.

Second - it is the entrepreneur who chooses the restructuring advisor (it is not randomly determined by the Court). Considering the importance restructuring adviser for the success of the entire process, including its: experience, competence, efficiency, this is one of the key advantages.

Third the possibility of ensuring far-reaching and complete protection against execution for a period from 4 months to even 12 months. During the period from the date on which the notice of arrangement day is made, existing enforcement proceedings shall be suspended by operation of law and new ones may not be initiated against the debtor for a minimum period of four months and, in the case of an application for approval of the arrangement, until it is examined.

Fourth protection of the entrepreneur by securing the continuation of contracts essential to the running of the business, including leases, rental agreements, loans;

Fifth the possibility of extending the composition agreement to claims secured in rem or secured by a security transfer.

Sixth - lowest cost.

Simplified restructuring

Our experience shows that since the implementation restructuring solutions preventive - a simplified procedure in the form of an arrangement approval procedure - entrepreneurs are increasingly attempting to save their businesses, instead of reaching for liquidation or bankruptcy solutions. There is a clear increase in awareness of the availability of legal tools that enable entrepreneurs who have financial problems to maintain control over their business and ensure protection from creditors for the time necessary to implement remedial actions.

Proceedings for the approval of an arrangement, called PZU for short, are conducted for the most part without the participation of the court. The basis for initiating the PAP is the conclusion of an agreement with a restructuring advisor selected by the entrepreneur, submission to the advisor of the necessary information such as the Preliminary Inventory of Receivables, the Preliminary Restructuring Plan. These documents enable the adviser to make a notice of arrangement day, with which the period of protection of the enterprise from enforcement proceedings begins and the existing ones are suspended. The next stage is the collection of creditors' votes. The restructuring adviser is responsible for verifying that the creditors' votes have been properly lodged, and prepares an opinion on the feasibility of the arrangement and a report from the arrangement supervisor. If the majority support of the proposed arrangement by the creditors, as required by law, is obtained, the entrepreneur submits an application to the Court for approval of the arrangement. From the date of filing the application until its approval, the protection of the enterprise is extended.

For whom Simplified Restructuring:

• for entrepreneurs,
• limited liability companies,
• simple public limited companies
• public limited liability companies not engaged in commercial activities
• partners of commercial partnerships
• partners in a partnership

When simplified restructuring?

• when the first difficulties arise in meeting obligations on time
• when circumstances arise which indicate that liquidity problems will arise in the near future (loss of contract, questionable litigation)
• when there is or appears to be a threat of enforcement proceedings, seizure of accounts, assets
• when it is crucial to safeguard against termination of key contracts (commercial, rental, credit)
• when temporary suspension of payment of obligations is needed

Important information:

• The procedure for approval of an arrangement is the fastest, cheapest and safest restructuring procedure available;
• The procedure for approval of an arrangement makes it possible to restructure all, but also only selected liabilities;
• Approval of an arrangement in an arrangement approval procedure protects the company's board of directors from liability for the company's debts;

PMR team

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