Company restructuring
Very often, business development requires additional funds to implement investment activities.
The company’s recovery process is an opportunity to improve its financial situation, streamline operations and prepare the company for new challenges. At RBBC, we support entrepreneurs by offering comprehensive assistance in overcoming difficulties and building a solid foundation for further development.
What is company restructuring?
Restructuring is an opportunity to regain control of a company that has found itself in a difficult financial or operational situation. It is a remedial process that allows the company to catch its breath, implement the most important changes and build solid foundations for the future. It is most often used when there are problems with liquidity, growing liabilities or declining revenues. However, it is worth remembering that company restructuring is not just about saving yourself from a crisis – it is also a way to streamline your business, adapt it to new market realities and prepare for further growth.
A well-executed business restructuring goes much deeper than just finances. It involves well-thought-out measures, including cost optimisation, organisational restructuring, renegotiation of contracts with contractors and the introduction of new business solutions. The aim is not only to ‘plug the gaps’, but to create a more efficient and stable business model.
Negotiations with creditors during restructuring
Negotiations are an important part of any restructuring. This is the stage at which a company has the opportunity to work out new terms for repaying its liabilities, reducing financial pressure and gaining time to implement remedial measures. Conducting these talks in a thoughtful manner is not only an opportunity to improve the company’s situation, but also an opportunity to rebuild trust in relations with creditors.
The first step in negotiations with creditors is a precise analysis of the company’s financial condition and a detailed determination of its liabilities. Proper preparation allows you to present creditors with a realistic debt repayment proposal that takes into account the company’s current capabilities. This often includes extending payment terms, spreading the debt into instalments or even partial debt forgiveness. The most important thing is that the solutions presented are credible and feasible.
The decision to start restructuring should never be put off until the last minute. The sooner an entrepreneur reacts to emerging financial problems, the greater the chance of successfully implementing corrective measures and avoiding bankruptcy. It is worth remembering that restructuring is not a last resort – it is a tool that can help a company get back on track before problems escalate. Signs that indicate that a decision to restructure should be made:
The legal basis for restructuring a company in Poland is the Restructuring Law, which has been in force since 1 January 2016. This law created mechanisms allowing entrepreneurs who find themselves in financial difficulties to avoid bankruptcy and rebuild their businesses. Restructuring is a solution that not only allows current problems to be resolved, but also prepares the company for changing market conditions. A quick response and implementation of corrective measures can effectively halt the worsening of problems and create an opportunity to regain stability and continue development.
Legal basis for restructuring
Restructuring law distinguishes four types of proceedings that can be tailored to the specific nature and needs of a company: proceedings for approval of an arrangement, accelerated arrangement proceedings, arrangement proceedings and rehabilitation proceedings. The Act imposes an obligation on entrepreneurs to act responsibly in the event of loss of financial liquidity or threat of insolvency, requiring them to take remedial measures. Failure to comply with this obligation may result in personal liability for the management board.
What are the benefits of company restructuring?
It is a process that not only allows you to overcome a financial crisis, but also provides real opportunities for growth. Thanks to properly planned actions, the company regains stability, improves efficiency and builds a solid foundation for further operation. One of the most important benefits of restructuring is debt reduction and improved financial liquidity. With the help of specialists, new terms for repayment of liabilities can be worked out – tailored to the current capabilities of the company. Spreading debts into affordable instalments or extending payment terms allows the company to catch its breath and focus on corrective measures.
Restructuring is also a time to look at how the company uses its resources. Even small changes in work organisation or management can significantly increase efficiency and savings. Thanks to restructuring, the company also gains an opportunity to rebuild its internal organisational structure. Streamlining the division of responsibilities, strengthening departments or implementing new procedures makes the company more flexible and ready to respond to changes in its environment.
Basic differences between the main types of restructuring proceedings
- Proceedings for approval of an arrangement – this is the simplest and quickest form of restructuring. With the support of an arrangement supervisor, the entrepreneur negotiates repayment terms with creditors and then submits an application to the court for approval of the agreed arrangement. The entire procedure is less formalised, making it suitable for companies that have good relations with their creditors and only need to settle their existing liabilities.
- Accelerated arrangement proceedings – this solution is for companies that require quick action but have not yet completely lost their financial liquidity. The procedure involves a simplified form of voting on the arrangement and minimal court supervision. This allows the entrepreneur to obtain creditors’ approval for their proposals in a short period of time.
- Arrangement proceedings – are more extensive and intended for companies with higher debt or a complex financial situation. In this case, the entrepreneur has more time to develop arrangement proposals and negotiate with creditors. The court plays an important role here, supervising the entire process and ensuring compliance with the law.
- Reorganisation proceedings – this is the most advanced form of restructuring, combining remedial measures with the protection of the company’s assets. Reorganisation proceedings give the entrepreneur the opportunity to withdraw from unfavourable contracts, reduce costs and implement profound organisational changes. The entire process takes place under the strict supervision of the court and requires the involvement of a qualified administrator.
Scope of activities carried out as part of restructuring proceedings
At RBBC, we provide comprehensive support to entrepreneurs who decide to undergo restructuring. Our activities are based on an in-depth analysis of the company’s situation and the selection of appropriate legal and financial tools. This ensures that the restructuring process runs smoothly and that the company has a real chance of regaining stability and continuing its development. Our services include:
- We conduct a detailed analysis of the company’s financial and legal situation.
- We prepare applications for the opening of restructuring proceedings and complete documentation.
- We develop restructuring plans and settlement proposals tailored to the company’s capabilities.
- We negotiate with creditors to work out favourable terms for the repayment of liabilities.
- We act as a court supervisor or administrator, ensuring that corrective measures are implemented.
- We help optimise costs and streamline the company’s internal processes.
With our support, the restructuring process runs smoothly and entrepreneurs can focus on their day-to-day operations, safe in the knowledge that all activities are carried out in accordance with the law.
Professional assistance in restructuring proceedings
We support entrepreneurs in the restructuring process by offering comprehensive legal and organisational assistance.
This type of support includes advice at every stage of the recovery process, enabling companies to overcome financial difficulties and regain stability. An important role is played by analysing the company’s situation, preparing the relevant documents and developing a strategy that enables the business to adapt to changing market conditions.
Thanks to the experience and knowledge of our experts, entrepreneurs can effectively negotiate with creditors, optimise internal processes and introduce organisational changes that improve the efficiency of the company’s operations. The law firm’s activities focus on finding the best solutions tailored to the specific nature of the company, which will not only help overcome the crisis but also create a solid foundation for further development.
