Case No.: GL1G/GRz/81/2024
MB/LAW is pleased to announce the successful completion of arrangement approval proceedings for an entrepreneur in the gastronomy and fitness sector, operating as a partner of a civil partnership running a restaurant and a fitness club equipped with a sauna and solarium.
The entrepreneur joined the civil partnership in April 2024. The business operated a leased commercial property containing a restaurant and a gym, including a sauna and solarium. The offer of services included: organisation of events, preparation and delivery of catering, lunch subscriptions, sauna sessions, solarium services, personal training sessions, rental of halls or tents for private events, catering and service stands at large external events, and hosting entertainment events. The business employed 7 persons under employment contracts and civil-law contracts, with total monthly wage costs of approximately PLN 22,581.
Circumstances Leading to Financial Distress
The debtor entered the civil partnership at a time when it was already experiencing financial problems. The difficulties were caused by:
- COVID-19 pandemic restrictions, which severely limited business operations in gastronomy and fitness, reduced customer numbers, and forced the business to operate in highly unfavourable conditions.
- Mismanagement by the previous partner during the current partner’s medical leave, including failure to supply necessary goods, non-payment of salaries to employees, communication problems, and loss of reputation.
- War in Ukraine, which led to a significant rise in energy prices across Europe and substantially increased the costs of operating a gastronomy business.
- Decrease in customer numbers, reducing profitability.
- Sharp increases in interest rates, significantly raising loan and credit instalments.
- Tax changes under the “Polish Deal”, including an increase in health insurance contributions and a rise in liabilities towards the Social Insurance Institution (ZUS) and the Tax Office.
Restructuring Process and Court Approval
Thanks to the work of the arrangement supervisor, attorney-at-law Michał Burek, LL.M., qualified restructuring advisor (licence no. 1665), and the support team, it was possible to reach an agreement with the creditors, conduct the voting process, and adopt the arrangement.
The arrangement was confirmed by a court order dated 29 January 2025.
Key Terms of the Approved Arrangement
1. Public creditor (ZUS)
- Full repayment within 10 months from the month of publication of the announcement of finality.
- The claim constituted joint and several liability of the partners of the civil partnership.
2. Bank creditor (ING Bank Śląski S.A.) – joint and several claims of the partners
- 3-month grace period,
- Repayment of 100% of the claim, including principal, ancillary claims (penalty interest and fees), and interest accrued before and after the arrangement date,
- Repayment in 108 equal monthly instalments.
3. Other creditors
- Remission of interest and ancillary costs, including enforcement and collection costs,
- No interest accrual from the date the arrangement became final,
- 3-month grace period,
- Repayment of 100% of principal in 60 monthly instalments:
- Instalments 1–20: 1% of principal each,
- Instalments 21–60: 2% of principal each.
If your business is at risk of liquidity loss or financial instability, we welcome you to contact us.
We handle each case individually and comprehensively:
- negotiating with creditors,
- preparing realistic restructuring proposals,
- and supporting entrepreneurs in restoring financial stability.
MB/LAW can help protect your business and secure its financial future.
