Lawyers point out that it may be difficult to restructure the Hawe group following recent court decisions. The listed company first announced a decision by a Warsaw court to open sanctioning proceedings at its subsidiary Hawe Telekom, and on Tuesday a similar decision for the listed company itself. Lawyers' doubts were raised by the fact that each company was given a different composition of people responsible for asset management and supervision. In Hawe Telekom, PMR Restrukturyzacje became the administrator. in Hawe - Wojciech Makuć, who acted as the company's forced administrator in January. Each of the companies also has a different commissioning judge. The material appeared in Parkiet magazine: on 10 March 2016: " Parallel sanctions in the group (...).
The recently in force restructuring regulations have several disadvantages in addition to many advantages. If they are not fixed quickly, the landmark reform could fail. Restructuring instead of bankruptcy, and bankruptcy only as a last resort - the new restructuring law is supposed to be a revolution in rescuing companies standing on the precipice. However, it is not without flaws that may limit its beneficial impact. District courts can't cope The biggest problem is that bankruptcy and restructuring proceedings are left to district courts, while they should be handled by county courts. - It is not uncommon for young judges to work in these courts, who are just starting their judicial practice, and bankruptcy and restructuring proceedings are among the most complicated civil proceedings and require a really high level of experience - says Anna Pukszto, legal counsel, partner at Dentons Law Firm and president of the Association of Restructuring Practitioners. The additional trouble is that the same courts also hear consumer bankruptcy cases. Maciej Roch Pietrzak, a licensed restructuring advisor and president of PMR Restrukturyzacje, points out that [...] (...)
Bankruptcy may soon become a rarely used term in Poland. This is because since the beginning of the year, a new restructuring law has been in force, which has also changed the bankruptcy law. According to its principles, almost every company will be given a second chance, and entrepreneurs will be bankrupted only as a last resort. There are more interesting solutions. Restructuring culture In general, the new law changes the approach to problems in a company. - It is a change from a culture of liquidation to a culture of restructuring, says Maciej Roch Pietrzak, a licensed restructuring adviser, president of PMR Restrukturyzacje, associate dean for science and legislation at the National Chamber of Restructuring Advisers. The previous Act of 2003. Bankruptcy and Reorganisation Law tended to favour bankruptcy. - The provisions for opening resolution proceedings were practically dead. Fewer than 60 proceedings over thirteen years were a failure,' points out Andrzej Głowacki, president of DGA. There were also few composition proceedings. - In practice, they accounted for only about 20 per cent of all proceedings, and only 138 agreements have not ended with their revocation to date. For most [...] (...)
The new restructuring law, which came into force on 1 January 2016, is intended to make procedures to rescue companies more streamlined, faster and more efficient. However, this does not mean that these provisions are easy and straightforward - to apply on your own. Restructuring advisers will assist in their effective use. In the event of a loss of liquidity or other crisis strongly affecting the condition of the company, entrepreneurs and managers most often try to cope on their own or use the assistance of internal financial and legal services. As practice shows, only a few manage to get out of the impasse in this way. The most common reason for bankruptcy is considered to be 'external factors' rather than a lack of practical experience in restructuring processes. On the other hand, according to studies, the main problem is the late and passive attitude of entrepreneurs towards the crisis. Many believe that intuition and possibly reading bankruptcy laws are enough to cope with a difficult situation. Restructuring is a complex issue and therefore the knowledge of specialists should be used. When an entrepreneur is at risk of bankruptcy [...] (...)
Organised by the Ministry of Development, the conference focused on business culture in Poland in the context of the government's New Opportunity Policy (PNS) programme. This is a development programme that comprehensively addresses the issue of enterprise management in crisis situations and issues related to enterprise liquidation. The main objectives of the PNS are: to prevent enterprise crises by setting up early warning systems, to reduce the risk of enterprise liquidation through extrajudicial and judicial forms of recovery and restructuring, to carry out enterprise liquidation efficiently and to support business restarts - the so-called 'new start'. It is worth writing more about it soon, and today I would like to focus on one part of the meeting. The final panel discussion of the conference, entitled 'Failure and collapse in business - how to survive, learn lessons and move on', was an opportunity to discuss approaches to mistakes, failures and how to recover from them. It was attended by a group of business practitioners - entrepreneurs, advisors or business coaches. Thanks to the invitation of the organisers, who found [...] (...)
The topic of the new law continues to ignite discussions among specialists in various fields. Probably many more people and their opinions will strengthen the discourse, which I consider to be a very good sign. For it indicates how much change is needed in the area of restructuring Polish companies. The new Restructuring Law, coming into force on 1 January 2016, is a milestone in the approach to rescuing companies from the crisis. It makes new resolution procedures available, changing the culture of liquidation into the primacy of restructuring. And while many issues will change, the legislator is not closing the way for further improvements. In the course of the work on the law, many good ideas were put forward, which were ultimately not adopted, due to the extended time for their implementation. This is because the legislator's idea was to implement the new remedial procedures first and then refine further changes. Otherwise, we would have waited for more years and Polish companies would not have been able to defend themselves effectively against bankruptcy. I am not a defender of the Ministry of Justice or of the Act itself, but as a restructuring practitioner, I see good [...] (...)
Aggressive debt collection activities in many cases lead to a loss of liquidity for the indebted company, making it impossible to effectively satisfy all creditors. At the same time, creditors have few tools at their disposal to motivate debtors to repay their debts. The problem therefore affects both creditors, weary of waiting for the goodwill of the debtor, but also the debtors themselves, who fear radical debt collection procedures by aggressive creditors. The solution is enforcement proceedings by receivership, which have been present in Polish law since 2005. In the course of actions, e.g. bailiffs' actions, the debtor may still effectively dispose of his assets, making it significantly more difficult or impossible to satisfy the creditor. Therefore, enforcement proceedings by receivership over the debtor's business is an effective method of stopping the debtor from 'absconding with his assets', which can be used by the creditor. The procedure is described in Article 1064 ind 1 et seq. of the Code of Civil Procedure. Unlike bankruptcy proceedings - receivership is relatively unformalised. It offers a very good chance of recovering the entire nominal obligation and interest from the debtor. Moreover, sufficiently early [...] (...)
The adoption of the Restructuring Law and extensive changes to the Bankruptcy Law - significantly increase the chances of saving many Polish companies in a difficult financial situation. The changes are fundamental, as the entire procedure for dealing with debtors' claims is being reorganised. However, it should be remembered that even the best law will not have a positive effect if it is not applied early enough or if it is applied incorrectly. Undoubtedly, the changes will bring many benefits to companies in trouble - we are already seeing interest from entrepreneurs in the new tools. However, these are only changes in the law. Real improvement depends on people - on judges, restructuring advisors and, above all, on entrepreneurs themselves, i.e. debtors and creditors, on whose promptness of decisions the fate of many a company depends. Antidote to companies' problems From 1 January 2016, companies in trouble will benefit from the New Restructuring Law. Under the law, entrepreneurs who are even at risk of insolvency will be able to use restructuring tools, protecting companies from aggressive debt collection and further loss of liquidity [...] (...)
The troubles of the Alfa Star travel agency are another example of a company that has failed to cope with the difficult situation on the travel services market. However, the company, which until recently was among the top tour operators in Poland, did not go bankrupt overnight. The right response could have saved it. At the moment, we know little - Alfa Star has announced that it has lost its financial liquidity and that it will not fulfil its obligations under the travel service contracts concluded with its customers. We can only talk about the company's bankruptcy after the court confirms this fact, at the request of creditors or the debtor itself, which has not yet happened. Nevertheless, it is a fact that tourists staying abroad have to be brought back home, which may even cost the equivalent of an insurance guarantee, i.e. around PLN 20 million. Travel agents are typical businesses. Like all commercial entities, tour operators are also affected by external and internal factors shaping the market situation. Thus, there can be many reasons for a loss of financial liquidity. However, the most common cause of bankruptcy [...] (...)
Atlantic, like other liquidated companies, could have avoided bankruptcy. The opportunity lies in restructuring and a professional recovery plan, moreover presented at the first symptoms of the crisis and not in its last phase. In the case of Atlantica, the Insolvency Court did not give credence to the restructuring architecture presented. Thus, the economic aspect and the lack of a credible recovery plan failed. A successful restructuring proposal requires an in-depth audit of the company and its condition. The recovery plan executed on this basis must identify critical points and problematic risk zones so that, in addition to the company's recovery path, it protects the company from further crises. Most importantly, the plan must be formulated and submitted as early as possible, when there is a real chance of judicial protection for the restructuring. Atlantica's case is not lost. In the course of bankruptcy, the option can be changed from liquidation to arrangement. The trustee will also attempt to sell the company in its entirety - so the chances are that only the company will be liquidated. The new Restructuring Law introduces the primacy of restructuring over bankruptcy, therefore it is an opportunity for companies in a similar [...] (...)
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