According to Coface data, in the first half of 2021, Poland recorded a record 160% year-on-year increase in the number of business insolvencies. In order to get out of a difficult financial situation and avoid bankruptcy, companies must go through a restructuring process, which is a completely new experience for most of them. This, in turn, makes it easy to make mistakes and have painful consequences. Experts PMR Restructuring and the FKK Law Firm indicate what debtors should pay particular attention to and what mistakes they should avoid in order to really increase the chances of saving the company.
To restructuring proceeded as smoothly as possible, both for the creditor and the debtor, knowledge of the law and experience in similar proceedings are key. Unfortunately, indebted entrepreneurs face a number of challenges and difficult decisions during the restructuring process, which, in the absence of appropriate support, are often accompanied by errors.
Every day of delay matters
From the debtor's perspective, the key factor is, above all, the time of starting the restructuring process. As Aleksandra Pakuła, legal counsel at the FKK Law Firm, emphasizes, submitting a restructuring application only at the time of initiating enforcement proceedings bailiffs, this is definitely too much delay, which may turn out to be very expensive.
Taking advantage of restructuring when the company's economic situation deteriorates, including a decline in liquidity, is much more effective and offers much greater opportunities for exit. companies out of crisis. Thanks to a quick reaction, the entrepreneur gains the opportunity to protect the legitimate rights of creditors and increases the probability of preserving the company, its strategic assets, and even a quick return to market activities while maintaining full competitiveness. – says Aleksandra Pakula.
Moreover, it happens that an entrepreneur aware of the difficult situation makes attempts to protect his assets. Meanwhile, disposing of property before filing an application is also a common mistake of the debtor. It is worth remembering the existence of the so-called Pauliana action, which allows the debtor's actions from the last five years to be rendered ineffective. Other consequences of such actions include, among others, hindering restructuring activities and reducing trust in the debtor, which may negatively affect the subsequent stages of the proceedings.
Key creditor-debtor communication
Another mistake is the lack of communication with creditors. According to experts, it is most often caused by a mental barrier and a sense of embarrassment about having to restructuring. Meanwhile, an honest and direct conversation with creditors usually has a positive impact on the entire process.
In my experience, seeking meetings with the other party makes it easier to reach an agreement. As the last few months have shown, any trader - often unexpectedly - can find himself in a difficult situation, and efficient communication between the parties makes it possible to significantly change the debtor's position – emphasizes Małgorzata Anisimowicz, President of the Management Board of PMR Restructuring and qualified restructuring advisor.
She is echoed by Aleksandra Pakuła, who points out that debtors often forget that there are people on the other side who have not been paid in full for services rendered or goods sold.
The whole situation requires a specific approach and a comprehensive explanation of the problems that have occurred, so that the other party is aware of the reasons for insolvency or the threat of such a state. Lack of transparency in this area is a common mistake that negatively affects the image and credibility of the debtor, and consequently weakens his position in the process. restructuring – says legal counsel at the FKK Law Firm.
Małgorzata Anisimowicz – qualified restructuring advisor and president of the management board PMR Restructuring and Aleksandra Pakuła from the FKK Law Firm provided commentary on the publication for the outsourcingportal.pl website devoted to the topic of outsourcing.
20 September 2021. We invite you to read the full version:»What mistakes do debtors most often make during restructuring?
English 
Polish 
Ukrainian