If your business has financial difficulties but you still have adequate funds for its recovery, restructuring proceedings may be the best way to avoid bankruptcy. The purpose of restructuring proceedings is the opportunity to save the business, ensure its continuation and avoid the need to declare the debtor bankrupt. It enables concluding a composition with creditors and, in the case of recovery proceedings, also by carrying out recovery actions, while safeguarding the legitimate rights of creditors. This relatively new legal solution is called the “second-chance policy”.
Restructuring proceedings may take the following forms:
- proceedings for the approval of the composition;
- accelerated composition proceedings;
- composition proceedings;
- recovery proceedings.
The choice of the appropriate form of restructuring proceedings depend on the preliminary analysis of the financial condition of the company, assets and other important factors. Of course, the first are of a general nature. Therefore, unless the legislator has expressly provided otherwise, they apply to any restructuring proceedings and must be taken into account in the interpretation of specific provisions. It should also be noted that the restructuring proceedings are of a civil nature and their common feature is the change in the legal situation of the debtor by concluding a composition with creditors. On the other hand, the main differences between these proceedings concern the scope of the protection granted to the debtor and the method of managing his assets.
Like bankruptcy, restructuring allows for many significant and positive changes in the condition and image of the company as a result of initiating the proceedings. It enables the suspension of ongoing enforcement proceedings and prevents the direct initiation of new ones. You may also regain the trust of contractors and conclude appropriate agreements with creditors.
Restructuring offers, first and foremost, the possibility of restoring the company’s financial liquidity, creating an appropriate and tailored debt strategy and avoiding the need to declare bankruptcy thanks to the support and assistance of specialists in this narrow field of law.
Our Law Firm provides professional assistance in the preparation and implementation of subsequent stages of restructuring proceedings through qualified specialists, including a licensed restructuring counsel. We provide comprehensive assistance in this area to entities across the country.