Case No.: EL1E/GRz/47/2023
MB/LAW Law Office is pleased to announce another successful case – the approval of a restructuring plan for a company operating in the timber sales and transport sector.
The debtor, running a sole proprietorship, provides comprehensive services in the purchase, sale, and transport of timber. The company operates in two main segments: timber sales and domestic transport across Poland. The main clients are large industrial enterprises, although in recent years the business has expanded to smaller entities to improve client diversification.
Financial difficulties began in 2021, following a personal tragedy – the death of the debtor’s husband, who co-managed the business. The disruption in accounting and administration led to growing debts and worsening liquidity. Additional burdens included high ZUS contributions and systemic tax issues.
After a thorough legal and financial analysis by the MB/LAW team, under the direction of attorney-at-law Michał Burek, LL.M. (licensed restructuring advisor no. 1665), it was recommended to initiate a restructuring approval procedure (PZU). Concrete restructuring proposals were prepared, balancing the interests of creditors while offering a realistic path for the company to continue operations.
As a result of MB/LAW’s efforts:
- The arrangement was accepted and formally approved by the District Court in Elbląg on 25 January 2024.
- Statutory and penalty interest was fully written off for many creditor groups.
- Principal repayments were spread out over up to 96 months, especially in the case of the largest bank obligations.
- The repayment schedule was tailored to the Debtor’s liquidity capabilities, with the monthly instalment reduced by over ten thousand zlotys.
Although the arrangement did not receive majority support in all creditor groups, the requirements of Article 119(3) of the Restructuring Law were met. A private creditor test confirmed that the arrangement provides creditors with a higher level of satisfaction than a hypothetical bankruptcy would.
If your business operates in a difficult environment, struggles with debt, issues with tax authorities, ZUS or banks – contact us. MB/LAW will develop a tailored restructuring plan that fits your situation.
We handle negotiations, prepare realistic repayment schedules, and work to ensure you get a chance to open a new chapter in your business.
