Restructuring and insolvency

We conduct an in-depth audit of the client’s financial and legal situation. Based on this, we recommend the best course of action — for example, choosing the appropriate type of restructuring procedure (arrangement proceedings, remedial proceedings, accelerated arrangement proceedings) or deciding to file for bankruptcy.

We assist in compiling all documentation necessary to initiate proceedings. We draft applications for the opening of restructuring or bankruptcy proceedings, prepare arrangement proposals, restructuring plans, creditor lists, and other required attachments.

We represent debtors or creditors before the commercial court. Members of our team — licensed restructuring advisors — can also serve as arrangement supervisors, court supervisors, or administrators in restructuring proceedings, ensuring full control over the course of the process.

We actively participate in discussions with the client’s largest creditors (banks, leasing companies, contractors). We work out agreements that help secure support for the arrangement or achieve an amicable debt restructuring outside the court (e.g., workout — voluntary debt restructuring).

We develop and implement a debt restructuring plan. This may include, among others, debt reduction (partial debt write-off under an arrangement), installment payment plans, securing new investors or bridge financing, debt-to-equity swaps, etc. The goal is to restore the company’s financial liquidity and profitability.

By initiating restructuring proceedings, we can suspend ongoing enforcement actions and protect the client’s assets from seizure by bailiffs. We also assist in challenging enforcement or protective measures that violate the court-imposed moratorium.

After the arrangement is successfully approved, we do not leave the client on their own. We oversee the implementation of the arrangement’s provisions — monitoring the repayment schedule, advising on possible amendments to the arrangement, and assisting in obtaining additional sources of financing. Our goal is to ensure that the client’s company recovers after restructuring and avoids future crises.

In situations where restructuring proves impossible or economically unjustified, we support clients in preparing and declaring bankruptcy (for both entrepreneurs and individuals — including consumer bankruptcy). We handle insolvency cases from filing the petition, through lodging claims, to participating in creditors’ meetings. We ensure that the bankruptcy process runs smoothly, with respect for the debtor’s rights and maximum satisfaction of creditors.

A medium-sized transport company faced a severe crisis — it was at risk of having its vehicles repossessed by leasing companies, running out of funds to pay drivers, and even losing key contracts. Thanks to the swift response of our team, we managed to halt enforcement actions and initiate accelerated arrangement proceedings.

We established dialogue with the main secured creditors (banks, leasing companies) and negotiated temporary agreements that safeguarded the company’s assets.

We then prepared a realistic restructuring plan and arrangement proposals, which gained the approval of the majority of creditors. The arrangement allowed the debt to be repaid in manageable instalments, which, within a year, resulted in the company regaining full financial liquidity and strengthening its position in the transport market.

The development company Perfect Solutions was struggling with a loss of liquidity due to a sharp increase in material costs and delays on construction sites. We filed an application and successfully initiated accelerated arrangement proceedings.

In cooperation with the company’s management, we developed a detailed restructuring plan that included cost reductions, the sale of non-essential assets, and securing an industry investor. We prepared arrangement proposals providing for a partial debt reduction and the postponement of repayment deadlines for the remaining obligations. Our lawyers actively persuaded key creditors (including banks financing the projects) to vote in favour of the arrangement.

Thanks to a well-prepared plan and effective negotiations, the required majority was obtained — the court approved the arrangement, enabling the company to complete its ongoing construction projects. Perfect Solutions avoided bankruptcy and, after restructuring, continues operations with a stable financing structure.

A commercial real estate investment group was on the brink of insolvency due to a downturn in the office rental market. MB/LAW advised initiating remedial proceedings, which gave the company time to regroup.

As part of the proceedings, repayment of certain debts was suspended, and the court-appointed administrator (from our firm) renegotiated lease agreements with key tenants, reducing the costs of maintaining vacant space. At the same time, two unprofitable properties were sold, improving liquidity. After 12 months, the company reached an arrangement with banks and bondholders, which was subsequently approved by the court.

The company regained financial stability and avoided liquidating assets below their market value.

A family restaurant chain faced severe financial difficulties due to pandemic restrictions and a drop in customer numbers. The main threats were lease terminations and claims from food suppliers.

Under our supervision, arrangement proceedings were initiated, securing court protection from creditors. We successfully negotiated temporary rent reductions with landlords and agreed with suppliers to spread overdue payments into instalments. At the same time, we assisted the company in implementing a cost optimisation plan, which included shifting the business model towards deliveries and catering.

The court-approved arrangement allowed debts to be repaid over a longer period, enabling the restaurants to survive the most challenging phase and return to profitability after the pandemic.

An advertising agency lost liquidity after the sudden withdrawal of two major clients and increasing payment bottlenecks. We advised initiating accelerated arrangement proceedings – the application was filed before creditors could take legal action.

Within three months, we worked with the client to develop a restructuring plan, which included downsizing office space and reducing some fixed costs. At the same time, we helped secure a strategic investor who provided fresh capital. This made the arrangement proposals – a 50% debt reduction and repayment of the remainder over two years – attractive to creditors, leading to the arrangement being accepted and approved.

The agency avoided bankruptcy, joined forces with the investor, and is now rebuilding its client portfolio.

A healthy food manufacturer was on the brink of bankruptcy due to a sharp increase in raw material prices and the termination of several contracts by retail chains.

We initiated arrangement proceedings, securing rapid protection against enforcement actions. During the process, MB/LAW’s lawyers negotiated a loan repayment moratorium with the banks, and continued cooperation with key suppliers on the condition of partial prepayments – for which we secured bridge financing from an investor.

The arrangement approved by creditors extended debt repayment deadlines and allowed debts to be repaid from new revenue streams. These measures gave the company time to rebuild its distribution network. After completing the restructuring, the manufacturer stabilised its finances, remained on the market, and is now reporting sales growth.

A family-owned fruit farm was overwhelmed by debt after a series of poor harvests and natural disasters. Instead of declaring bankruptcy, we helped the owners carry out an out-of-court debt restructuring.

We negotiated settlements with banks and suppliers – loans were granted a grace period on principal repayments, and arrears to agricultural input suppliers were spread over several years. At the same time, the farm was transformed into a limited liability company, which facilitated the acquisition of a new investor (shareholder) and fresh capital to rebuild production.

Thanks to these measures, the family business avoided consumer bankruptcy of the owners, survived the crisis, and is now gradually getting back on track.