Case No.: RA1R/GRz/26/2023
MB/LAW Law OfficeFirm is pleased to announce the successful conclusion of restructuring proceedings for a business operating in the sales of industrial chemicals – including lubricants, adhesives and cleaning agents.
The entrepreneur has run the company continuously under a single brand since the year 2000. The business serves customers through both brick-and-mortar and e-commerce models. Most clients are industrial companies, including recognised Polish manufacturers, e.g. a well-known national arms factory.
Financial difficulties began during the COVID-19 pandemic, when disruptions in global supply chains caused long delays in order fulfilment and up to a threefold increase in goods prices. As a result, the company lost part of its profitability and operational stability. Further issues arose from rising interest rates, which drastically increased loan repayments. At the same time, clients’ payment delays and increased obligations to ZUS and the tax office (due to “Polski Ład” tax reforms) worsened the financial strain.
After conducting a detailed legal and financial analysis, the MB/LAW team, led by attorney-at-law Michał Burek, LL.M. (licensed restructuring advisor no. 1665), determined that a restructuring approval procedure (PZU) would be the most effective solution. Realistic restructuring proposals and a repayment schedule were prepared and presented to the creditors.
Outcome of the process:
- The arrangement was accepted by the creditors and formally approved by the District Court in Radom on 13 October 2023, case no. RA1R/GRz/26/2023.
- Interest on some bank debts was fully or partially written off, depending on the creditor group.
- Principal debts were spread into instalments – in some cases over 96 months.
- The debtor’s monthly obligations were significantly reduced, allowing for regular and timely repayment of liabilities.
The legal basis for the jurisdiction of the Polish court was Article 3(1) of EU Regulation 2015/848 — the procedure was classified as main proceedings
If your business is facing financial distress, don’t wait. Contact MB/LAW. We treat every case individually.
We support entrepreneurs in times of crisis: we negotiate with creditors, build reliable repayment plans, and pursue one goal — saving the company and restoring its liquidity.
