Restructuring and insolvency
Restructuring is a complex and complicated process that requires the efficient application of many areas of law.
If entrepreneurs take appropriate actions in a timely manner, they can protect themselves against decreases in profitability or even bankruptcy.
In 2016, a new Restructuring Law and a amendment to the Bankruptcy Law came into force. They introduced significant changes for entrepreneurs that find themselves in a difficult situation. This second chance policy, gives an entrepreneur the opportunity to save their enterprise and stay in business. It implements a preference for restructuring procedures concerning bankruptcy. At the same time, the provisions enable creditors and debtors to influence the choice of the restructuring advisor, who acts as a supervisor, administrator or official receiver in the proceedings.
Restructuring law
This new institution in Polish law is an opportunity to save an enterprise so it continues doing business. This is second chance policy, i.e. the preference for restructuring proceedings concerning bankruptcy proceedings. However, restructuring requires effort on behalf of the debtor, thus it is necessary to provide professional legal advice and the proper preparation of arrangement proposals at every stage of the proceedings.
Bankruptcy law
When a company is threatened by financial problems, insolvency or bankruptcy, the customer needs quick effective advice that meets their needs. We provide legal assistance in the field of bankruptcy and recovery proceedings.
How can we help?
We provide comprehensive legal assistance for companies undergoing restructuring and bankruptcy proceedings. In particular, we advise on:
- judicial restructuring
- debt restructuring
- corporate, organizational, property and employment restructuring, as well as tax restructuring and public aid
How do we work?
we analyze the company’s situation |
we create a map of risks and threats |
we develop a restructuring plan |
we advise on how to maximize the benefits |
we demonstrate how to reduce losses caused |
we prepare an optimal strategy that takes into account the specific circumstances, the level of complexity and the multifaceted nature of the case |
Experience
Representation of the debtor in the sanative proceedings which enabled the debtor to implement a number of sanative actions such as composition with the creditors and withdrawal from disadvantageous agreements; as a result of SSW’s consulting, the debtor withdrew from 17 disadvantageous agreements for lease of trading space in shopping centres, leaving only 3 agreements for the most beneficial shopping centres in Poland from the point of view of location.
Consulting and active support for a creditor in developing tactics containing the most effective method of debt collection against the debtor in one of the largest restructuring cases in the recent years in Poland; the case included very complex factual circumstances connected with currency options agreement between the creditor and the debtor.
Acting on behalf of an investor in one of the first bankruptcy proceedings in Poland with a motion for approval of the sales conditions of the debtor’s enterprise or its organised part (the so called pre-pack); pre-pack is an innovative solution in Polish law, enabling an investor to acquire an existing and operating enterprise of the debtor; as a result of SSW’s consulting, the investor acquired an operating and debtless wind farm for a very small part of its initial value.
Active support and cooperation with the restructuring advisor in the restructuring proceedings of a debtor by determining the groups of creditors entitled to vote on composition; the goal was to treat bad creditors as disputable creditors and not allow their voting on composition.
Consulting for a debtor with a contingent debt of PLN 87,000,000.00 resulting from a surety agreement in one of the largest restructuring proceedings in Poland in the recent years. SSW represents the creditor in the restructuring proceedings and also operates as the security administrator.
Substituting the creditors in various bankruptcy proceedings ending with the announcement of the debtor’s bankruptcy and sale of its assets by the receiver and composition with the creditors.
Consulting for a debtor in bankruptcy proceedings, the debtor had real estates in the centre of Poznań. SSW actively supported the debtor in negotiations with the creditors (including the State Treasury) concerning composition which is the most beneficial for the participants of the proceedings.
Łukasz Cudny
Partner
Filip Balcerzak, LLM, PhD
Partner
