Its main purpose is to protect the company from bankruptcy and create conditions for debt restructuring in the shortest possible time.

What is accelerated composition proceedings?

It is one of four types of restructuring proceedings provided for by Polish law. It enables companies at risk of insolvency to quickly reach an agreement with creditors without the need to engage in fully developed court proceedings. Its essence is to simplify the process and focus on effective cooperation with creditors.

A characteristic feature of PPU is the protection of the debtor’s assets from the moment the proceedings are opened. This gives the entrepreneur time for negotiations and restructuring, instead of facing enforcement or other forms of debt collection. However, in order to benefit from PPU, specific conditions must be met.

Who is PPU intended for?

This solution is for entrepreneurs who are struggling with financial problems but are not yet fully insolvent. One of the most important criteria is the structure of the debt – disputed claims may not exceed 15% of the total debt. This means that the majority of creditors must agree on the existence of their claims.

The procedure is particularly effective for companies that have a solid business foundation but have experienced temporary liquidity problems. Thanks to the speed of the procedure and limited costs, PPU can become a real opportunity for survival and rebuilding market position.

How does the accelerated arrangement procedure work?

The PPU consists of several stages:

1. Submission of an application to the court – the process begins with the preparation of an application containing a preliminary restructuring plan, a list of claims and arrangement proposals. Well-prepared documentation is the basis for effective proceedings.
2. Opening of proceedings – after the court approves the application, the debtor gains protection from enforcement. This is the moment when the entrepreneur can focus on negotiations with creditors.
3. Role of the court supervisor – the supervisor monitors the company’s financial situation, prepares reports for the court and actively supports negotiations with creditors.
4. Voting on the arrangement – creditors vote on the proposed arrangement and the results are sent to the court in a simplified form, which significantly speeds up the procedure.
5. Court approval of the arrangement – once the arrangement has been accepted by the creditors, the court approves it, which concludes the proceedings and allows the debtor to implement the agreed repayment terms.

This process requires swift action, precise preparation of documents and effective negotiations. The proper execution of each stage determines the success of the process and the future of the company.

Benefits of accelerated arrangement proceedings

Accelerated arrangement proceedings are an effective tool for companies in crisis, offering many benefits:

• Speed of the procedure – compared to other forms of restructuring, PPU can be completed within a few months.
• Protection against enforcement – the entrepreneur gains time to develop solutions without fear of losing assets.
• Retaining control over the company – the debtor continues to manage the company with the support of a court supervisor.
• Lower costs – the simplified procedure means lower expenses than in more complex proceedings.
• Improved relations with creditors – negotiations in good faith can help rebuild stakeholder confidence.

Each of these benefits contributes to increasing the chances of successful restructuring and returning the company to the path of growth.

Challenges and risks associated with PPU

Despite its many advantages, accelerated arrangement proceedings also present certain challenges that need to be carefully analysed before deciding to implement them. One of the most important is the need to prepare documentation, such as a court application or a restructuring plan, with precision. Any formal errors may result in the application being rejected and the path to restructuring being closed. Furthermore, the use of PPU is limited to companies where disputed claims do not exceed 15% of total debt, which excludes companies with a more complex liability structure.

Another challenge is obtaining creditors’ consent to the proposed terms of the arrangement, which requires effective negotiations and a realistic approach to the possibility of repaying liabilities. Ultimately, although the speed of the procedure is one of its main advantages, it requires immediate action and full mobilisation of the entrepreneur and their team. Understanding these aspects and proper preparation are important for the success of the entire process.

Is accelerated arrangement proceedings the right solution?

This tool is designed for entrepreneurs who need quick action in the face of a financial crisis. However, its effectiveness depends on careful preparation, competent advice and a realistic approach to negotiations with creditors. Our law firm, RBBC, offers comprehensive support at every stage of the accelerated arrangement procedure. We prepare documentation, assist in negotiations with creditors and provide professional legal advice to ensure that the process runs smoothly and effectively. Thanks to our experience and knowledge of the procedures, we support entrepreneurs in developing a recovery plan tailored to their needs.

Why consider accelerated arrangement proceedings?

Accelerated arrangement proceedings offer an opportunity to effectively resolve a company’s financial problems. Their success depends on precise planning, professional support and the entrepreneur’s commitment to negotiations with creditors. If you are facing a financial challenge, consider PPU as an effective method of rescuing your company. Contact our RBBC team and let us support you in developing a strategy that will restore your company’s balance and open up new opportunities for growth. Together, we will find the best solution.