Re-arrangement proceedings part 1

Remedy for difficulties during layout

Opening restructuring proceedings is the first step on the way to regaining liquidity and avoiding bankruptcy, and the adoption of the arrangement and its final approval is the moment when the Entrepreneur can finally breathe.

First As a general rule, on this date, the maturity of the debts covered, the manner in which they are to be paid and often also the amount due to the partial cancellation of debts are changed,

Secondly in the case of legal persons, their representatives (Management) absolve themselves from liability for these obligations.

Third what is worth emphasising - such an adopted arrangement does not have to be a final construction, as the law provides for the possibility of its later modification within the framework of the proceedings to modify the arrangement.

The layout designed in the proceedings is a projection, at least several years, the assumptions of which are made during the period of the proceedings, taking into account the possibilities and conditions that are known or foreseeable at that stage. Unfortunately, recent years have shown how much and how quickly the political, economic and administrative environment for business can change, and with the outbreak of war in Ukraine, the Sars Cov-2 pandemic, or unprecedented tax and legal changes, also how unpredictable it can be. W świetle powyższego istotne jest, so that entrepreneurs are aware of the existence of a solution that allows for the modification of the arrangement adopted in the restructuring procedure, which is the procedure for the modification of the arrangement.

In our practice, we are increasingly confronted with situations in which we are approached by a client who has an approved layout, often a largely completed one, and who is faced with a threat to its further implementation due to the occurrence of phenomena beyond his control and which he was often unable to foresee.

Jako przykład może służyć wspominany już wybuch wojny na Ukrainie i zamknięcie części rynków wschodnich, które przerwało wiele łańcuchów dostaw, czy wybuch pandemii, który z dnia na dzień zupełnie sparaliżował część branż uniemożliwiając zupełnie prowadzenie działalności. There have also been more mundane examples where the source of funding for part of the arrangement was to be the sale of a property that could not be finalised in the required timeframe, the withdrawal of orders by a major contractor with low diversification of customers, an enforced reduction in business or increased competition in the market.

In each of these cases, clients firstly needed analytical support, które pozwoliło określić możliwe sposoby zmiany układu, dla zapewnienia jego wykonalności oraz czas potrzebny na wprowadzenie wymaganych zmian w działalności operacyjnej, a dalej przeprowadzenia przez proces uzyskania aprobaty wierzycieli na proponowane kierunki zmian.

The entire process from the commencement of the proceedings to the final approval of the change of arrangement can take several to several months. Z praktyki kancelarii PMR Restrukturyzacje S.A. przy dużym podmiocie, o rozbudowanej sieci dystrybucji i złożonej strukturze organizacyjnym, gdzie objętych postępowaniem o zmianę układu zostało przeszło 400 wierzycieli cały proces od momentu otwarcia postępowania do czasu wydania postanowienia o zatwierdzeniu zmiany układu udało się zamknąć w okresie 13 m-cy.

Proceedings for rearrangement is a solutionof which he should be aware every entrepreneur, and in particular the entrepreneur being in the process of implementing the arrangementThis is a solution that makes the implementation of the agreement more realistic by, for example, adjusting the volume of repayments to the new possibilities and realities of the market, makes it possible to maintain the continuity of the agreement and protects against the negative consequences of its revocation, the most important of which is the loss of the negotiated write-offs and immediate enforceability at the amount prior to the original agreement minus the repayments made.