Case No.: GL1G/GRz/65/2023
MB/LAW is pleased to announce the successful completion of restructuring proceedings for a service company specializing in outdoor advertising. The business provided a full range of services, including the production and installation of billboards, printing and pasting of posters, and large-format advertising banners. The court confirmed the arrangement (composition), ensuring the company’s continued operations.
The entrepreneur had been operating since 1999 in the field of outdoor advertising – from producing steel billboard structures, through poster printing, to installation. The business also manufactured and installed steel constructions, carports, and waste enclosures, as well as refurbishing advertising boards. The company owned its own printing facility (a 300 m² hall and a 250 m² shelter). Its main clients included Carrefour Polska, Magnumas, and Merkury Market, with services provided nationwide, primarily in southern Poland. In 2023, average monthly revenue amounted to approx. PLN 83,000. The company employed two staff members.
Causes of financial distress:
- COVID-19 pandemic (withdrawal of most orders by key clients such as Carrefour and Max Elektro, revenue decrease by approx. 30%, and departure of 3 employees who likely started their own businesses).
- Payment defaults by contractors (unpaid receivables of approx. PLN 250,000).
- Failed investment in preparing to install parcel machines (costs of approx. PLN 30,000–40,000 on vehicle modifications, site preparation, wages, and materials, after which the contractor withdrew from the order).
- Sharp increase in interest rates (loan costs rising by over 100%).
As a result, the company faced severe financial difficulties and was unable to meet repayment obligations on time.
Restructuring outcome:
Thanks to the work of the arrangement supervisor – attorney-at-law Michał Burek, LL.M., licensed restructuring advisor no. 1665 – and the MB/LAW support team, negotiations with creditors were successfully concluded. The arrangement was approved by the court on 13 March 2024.
- Public law creditor (Social Security Authority – ZUS): repayment in full, 24 monthly instalments, first instalment deferred by 3 months.
- Public law creditor (Tax Office): repayment of principal and accrued interest up to the arrangement date in 48 monthly instalments, with no further interest.
- Creditors with claims up to PLN 50,000: full waiver of interest from the opening of proceedings – repayment in 72 monthly instalments.
- Creditors with claims between PLN 50,001–200,000: repayment in 84 monthly instalments (principal and interest up to the arrangement approval date, with no further interest).
- Creditors with claims above PLN 200,000: repayment in 84 monthly instalments with interest at WIBOR 3M + 7.99% margin.
If your company is experiencing liquidity risks or financial problems, MB/LAW can help. We handle every case individually and comprehensively. We negotiate with creditors, prepare practical restructuring solutions, and actively support entrepreneurs in restoring financial stability.
