Make an arrangement with creditors on favourable terms

The initiation of restructuring proceedings serves to protect the integrity of the company, its value and brand, and saves key resources. It is also worth opting for because it leads to an agreement with creditors, improves liquidity, optimises debt and facilitates obtaining financing for the company. A turnaround can be limited to selected areas of the company or it can mean a strategic overhaul of the company, in financial, product-market and organisational terms.

- However, it should be borne in mind that the key criterion for the success of the undertaken restructuring, besides the construction of an appropriate repair architecture, is time, on which the range of repair procedures, stopping the crisis, depends. Restructuring undertaken in the early stage of a crisis provides a wide range of reactions, from launching financing, through negotiation of contracts, to modification of the business model - indicates Małgorzata Anisimowicz, President of the Management Board of PMR Restructuring.
Mistakenly, some entrepreneurs associate restructuring with the loss of management functions. There is no such danger when it is undertaken under conditions that specify the proposed solutions of the restructuring law.
- Restructuring even protects the management board from personal liability. The limitation of management functions occurs only in the case of sanctioning proceedings concerning companies in the most difficult crisis situations, in which management is entrusted to a person appointed by the court, who cooperates with the entrepreneur, emphasises Małgorzata Anisimowicz.

Kto może skorzystać z restrukturyzacji? Każdy. Jak podkreślają eksperci, postępowanie dostępne jest dla wszystkich rodzajów przedsiębiorstw, zarówno dla osób fizycznych prowadzących działalność gospodarczą jak i dla spółek, bez względu na wielkość i branżę.
– Jest narzędziem przydatnym każdemu przedsiębiorcy, zarówno temu zagrożonemu niewypłacalnością lub już niewypłacalnemu. Wczesne rozpoznanie przyszłych problemów z płynnością przedsiębiorstwa pozwala natomiast na skuteczniejsze zastosowanie narzędzi restrukturyzacyjnych, które przewiduje ustawa – mówi mec. Marek Kochański z kancelarii FKK Fluder Klocek Kochański Adwokaci i Radcowie Prawni S.K.A.

- Proper preparation of the architecture of the measures to be taken, therefore, requires the drawing up of analyses and scenarios for restructuring procedures in order to fully safeguard the company, introduce recovery programmes, obtain financing and conclude an arrangement with creditors. Therefore, due to the complexity of the issues and the degree of diversity of solutions, these are not rules to be applied alone. Assistance is provided by a restructuring advisor, providing interdisciplinary support throughout the restructuring process, including by a team of experts in fields relevant to the process, such as law, economics, finance, management and marketing,' Małgorzata Anisimowicz mentions.

However, what happens when creditors file for insolvency proceedings where the entrepreneur has initiated restructuring measures? This question is answered by one of the fundamental principles of the Act - Restructuring first.

The article appeared in Dziennik Gazeta Prawna:17 March 2020. We invite you to read the full version:" Make an arrangement with creditors on favourable terms