Their role in composition, reorganisation or bankruptcy proceedings is not limited to formal matters.

This person is responsible for preparing a restructuring plan, conducting negotiations with creditors, representing the company in court and supervising the implementation of the arrangement. Below we present the scope of their competences and functions, as well as situations in which their support may prove essential for maintaining the continuity of the company’s operations or protecting the interests of the debtor.

Who is a restructuring adviser and what are their functions?

Restructuring adviser is a legally regulated profession, but its importance in practice goes far beyond the statutory provisions. It is an expert whose main mission is to support businesses and consumers in regaining financial balance. A licensed adviser may act as a representative, supervisor, administrator or receiver, as well as a business adviser.

The path to obtaining a licence is not easy. It requires, among other things, higher education, at least three years of experience in business management, an impeccable reputation, no criminal record and passing an exam testing both theoretical knowledge and practical preparation for this responsible position. The licence is granted by the Minister of Justice on the basis of the exam results and fulfilment of the statutory requirements.

In their daily work, advisors do not just work ‘on paper’. They analyse the company’s situation, design a realistic restructuring plan, participate in negotiations with creditors and supervise the proceedings. They also support company management boards in making difficult decisions, from cost cutting to complete reorganisation of operations. They are often the first person an entrepreneur talks to about financial problems – and the one who points the way out.

Powers of a restructuring adviser in restructuring proceedings

When a company enters into restructuring proceedings, the adviser may act as an arrangement supervisor, court supervisor or administrator. Each of these roles involves a different set of powers, but their common denominator is the desire to avoid bankruptcy and save the company.

One of the advisor’s tasks is to develop a restructuring plan. This document not only diagnoses the causes of the company’s financial problems, but also presents a step-by-step strategy for solving them. The plan must be realistic, cost-effective and feasible. What is more, the adviser often also prepares settlement proposals, i.e. specific terms and conditions for the repayment of liabilities, which are then presented to creditors.

An important part of the adviser’s work is negotiation – both with banks and other creditors. The adviser does not operate in a vacuum – they combine the interests of the debtor with the expectations of the creditors, seeking solutions that are acceptable to both parties. They also keep the documentation required by the restructuring court, monitor the implementation of the plan, and if the situation worsens, they may recommend a change in the type of proceedings.

In their role as supervisor of the arrangement, their task is also to monitor the debtor’s activities on an ongoing basis. If any irregularities arise, they are obliged to inform the court and creditors. Their role does not end with the preparation of documents – it is often the adviser who keeps the whole process ‘in check’.

What are the advisor’s powers in bankruptcy proceedings?

A restructuring advisor can also play an important role in bankruptcy proceedings, both as an advisor to the debtor and as a bankruptcy trustee. Their assistance is invaluable as early as the stage of preparing the bankruptcy petition – they help to gather documentation, analyse the financial situation and assess whether there are indeed grounds for initiating proceedings.

In the further course of the proceedings, they can represent the client’s interests in court, contact the receiver, and even assist in the process of selling the assets. In the case of companies, this means support in the liquidation of fixed assets, goods, and sometimes even in the dismissal of employees. The adviser can also prepare a plan for the distribution of the proceeds from the sale and negotiate the terms of a settlement with creditors.

The difference between an adviser and a receiver lies mainly in the source of their authority: an adviser acts on behalf of the client, while a receiver is appointed by the court.

What functions can an adviser perform in court proceedings?

In court proceedings, an adviser can perform several important procedural roles. In proceedings for the approval of an arrangement, they most often act as the supervisor of the arrangement, appointed by the debtor themselves. In more complex cases, such as rehabilitation proceedings, the court decides on their selection, appointing them as the administrator of the rehabilitation estate.

The rehabilitation administrator is a special role. Such a person takes control of the company – manages its operations, concludes contracts, and can make personnel and financial decisions. Of course, strategic actions, such as the sale of real estate or the withdrawal from important contracts, require court approval. An adviser in this role not only ‘manages’ but, above all, protects the value of the company.

Regardless of their function, the adviser is also responsible for supervising the implementation of the arrangement – i.e. whether the conditions set out in the proceedings are actually being fulfilled. In the event of problems, they may inform the court or propose a change to the arrangement.

What are the limitations and responsibilities of a restructuring adviser?

Although the adviser has a wide range of powers, their actions are closely supervised – by the court, the Minister of Justice and professional self-regulatory bodies. Some of the adviser’s decisions – especially those concerning the management of significant assets – require prior approval by the court conducting the proceedings. The adviser must also comply with professional ethics: remain impartial, avoid conflicts of interest, act in good faith and in the interests of both parties to the proceedings. Their role cannot be used to achieve the goals of only one of the parties.

In the event of a breach of duties – e.g. incorrect analysis, improper supervision of assets or a conflict of interest – the adviser may face disciplinary, civil or even criminal consequences. For this reason, every adviser must be covered by civil liability insurance – this is essential protection for both them and their clients in the event of professional errors or omissions.

When is it worth using the services of a restructuring adviser?

Not every financial difficulty means that bankruptcy must be declared. Often, early intervention by a restructuring adviser can protect a company from complete loss of liquidity. If a company starts to have problems with current payments, the bank refuses to provide financing, and contractors demand immediate repayment of arrears, it is a sign that action is needed. And it is best not to act alone.

An adviser will not only help you choose the right path – an arrangement with creditors, rehabilitation proceedings, or perhaps informal restructuring – but will also guide you through the entire process. Their experience gives them a real advantage: they can predict how the court will act, how creditors will react, and where the risks lie.

The services of an adviser are available not only to companies, but also to sole traders and even consumers. In the case of consumer bankruptcy, an adviser will help prepare documents, assess the feasibility of debt relief and suggest possible solutions, including the protection of personal assets.

Feel free to contact RBBC – our advisers will help you choose the right solution, prepare the necessary documentation and guide you safely through the entire process.