Dozens of restructuring proceedings carried out and many hours of deliberation with entrepreneurs have enabled the law firm PMR Restrukturyzacje S.A. to develop a list of benefits of entering the simplified restructuring process:
1. Maintaining control of the financial situation:
Simplified restructuring allows the company to deal with its financial problems in a professional and courageous manner and maintain control of the situation. We stop 'burying our head in the sand';
2. avoiding bankruptcy:
Effective restructuring is the solutionto avoid formal bankruptcy of the company, which in turn minimizes the negative consequences for the company's owners, employees, contractors and shareholders;
3. negotiations with creditors:
The restructuring process enables negotiations with creditors to find sustainable solutions, such as reducing debt and restructuring repayment terms;
4. Preserving shareholder value:
Avoiding formal bankruptcy preserves shareholder, shareholder value, which shows that we can face up to the problem. Crisis management requires boards/owners/representatives to take a broader view and make bold decisions;
5. protecting jobs:
Simplified restructuring affects the cost structure, which helps maintain jobs by reducing operating costs and improving efficiency;
6 Accelerating the restructuring process:
Simplification of the process allows for quicker action, which is important in the case of companies in crisis. Although we are talking about simplified restructuring remember that we use the common name of the procedure for approval of the arrangement. It is a quick process that allows for the unblocking of the situation crisis and then we regain time to move the company out on the right path;
7. rebuilding stakeholder/customer/contractor confidence
Effective restructuring can help rebuild trust among stakeholders, including customers, suppliers and investors. Clear, efficient communication, presentation of crisis areas and upcoming changes in the existing business, presentation of repayment options to satisfy creditors while achieving the purpose of the restructuring procedure, which is to avoid bankruptcy of the company it is a message that builds trust and opens the way to further cooperation in the future;
8 Adjustment of cost structure:
Focus on eliminating excess costs and adapting the cost structure to the actual financial capabilities of the company;
9. minimise loss of brand value:
Avoiding formal bankruptcy and effective restructuring can help minimize the negative impact on the company's brand value;
10. Opening the door to further cooperation and development
Effective process management restructuring can open the door to further collaboration with suppliers, business partners and customers;
11. Finally, the achievement of THE PURPOSE OF RESTRUCTURING - TO RETURN TO EFFICIENT COMPETITION ON THE MARKET.
Experience shows. How important it is to act in crisis situations. So why are Entrepreneurs afraid of simplified restructuring?
1. lack of control: Process restructuring requires some changes. Entrepreneurs may fear losing control over their company and introducing new rules and processes. NOTHING COULD BE FURTHER FROM THE TRUTH it is the entrepreneur who continues to manage his company;
2. uncertainty: Simplified restructuring may lead to a certain degree of uncertainty as to the effects of these changes on the future of the company. This may cause fears and resistance. Here, analysis and good restructuring advice will suffice, which will allow understanding the process;
3 Cost and time: Process restructuring may be expensive and time-consuming, which may discourage entrepreneurs. The costs of simplified restructuring are the lowest among all other costs related to company protection, property and are defined by law;
4 Staff reactions: Simplified restructuring may cause resistance among employees, and entrepreneurs fear losing the team's motivation and commitment.
Here, effective communication with a restructuring advisor and mediator is important, as they will convey that only thanks to the introduction restructuring we will achieve stabilization and we will have a chance to develop the company and maintaining jobs;
5. risk of change: Every change in the organization carries some risks. Entrepreneurs may fear that simplified restructuring will not bring the expected benefits or they are not fully aware of the process. Here, it is important to choose an experienced restructuring law firm that will guide the entrepreneur step by step through previously unknown areas;
It is worth noting that simplified restructuring in a crisis situation is necessary to keep the company on the market, avoid bankruptcy and ultimately improving the company's efficiency and competitiveness, therefore it is important to properly prepare and plan this process.
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