Case No.: LD1M/GRz/90/2024
MB/LAW is pleased to announce the successful completion of restructuring proceedings for an entrepreneur in the creative industry, specializing in the production of unique plywood night lamps.
The entrepreneur had been running the business since 2017, focusing on the manufacture of wooden and decorative products, including plywood lamps with illuminated logos and children’s designs. Over time, the company expanded its portfolio from a few basic models to more than 70 unique lamp designs. The business model combined production and trade, with strong emphasis on quality craftsmanship, and relied on subcontracted artisans (B2B cooperation). Revenues in 2023 amounted to approximately PLN 51,054.
Causes of financial distress:
- COVID-19 pandemic: forced three-month business closure, limited international client access, external financing required to maintain liquidity,
- “New Deal” tax reform: ZUS social contributions tied to previous year’s income (following revenues of PLN 240,000 in 2021, monthly ZUS contributions rose to PLN 2,100),
- War in Ukraine: collapse of the timber market in Poland, embargo on Belarusian wood, sharp increase in production costs,
- Sharp interest rate hikes: significant rise in loan and credit instalments,
- Health issues (2024): medical diagnosis and treatment costs due to cancer-related illness, additional debt incurred to cover expenses.
As a result, the company faced serious liquidity problems.
Outcome of restructuring:
Thanks to the work of the arrangement supervisor – Attorney-at-Law Michał Burek, LL.M., licensed restructuring advisor (license no. 1665) – and the MB/LAW support team, negotiations with creditors were successful. The creditors voted in favour of the restructuring plan, which was confirmed by the Court on 11 February 2025.
- Public creditor (ZUS): full repayment within 6 months of the court notice of approval,
- Secured creditor (PKO BP S.A. – mortgage loan): full repayment of the principal, interest, and ancillary costs in accordance with the existing mortgage loan agreement,
- Other creditors: remission of interest and ancillary collection costs; no interest accrued from the date of approval; 100% of principal repaid in 75 monthly instalments (instalments 1–50 equal to 1% of principal each, instalments 51–75 equal to 2% each).
If your business faces liquidity challenges or financial distress, we invite you to contact us. We handle every case individually and comprehensively – negotiating with creditors, preparing practical restructuring proposals, and actively supporting entrepreneurs in regaining financial stability.
