Case No.: GD1G/GRz/110/2023
MB/LAW is pleased to announce the successful completion of restructuring proceedings for a service company specializing in the repair and maintenance of machinery as well as the installation and servicing of industrial dedusting systems. The arrangement (composition) was confirmed by the court, ensuring the company’s financial survival and continued operations.
The entrepreneur had been active since 2008 in the installation and servicing of dedusting systems. The company’s main clients were furniture factories, waste-sorting facilities, and paper mills. The debtor also acted as a subcontractor for larger companies (e.g., Nestro), installing systems in major facilities, including IKEA stores. Revenues had been steadily increasing, reaching approximately PLN 800,000 in 2022. The company employed four workers engaged in installation services.
Causes of financial distress:
- Outbreak of the war in Ukraine, which forced the termination of a major installation contract after only 3 weeks (planned to run until July 2022), leaving the company without other contracts for that period and requiring urgent search for new orders.
- Continuous rise in interest rates.
- Increase in minimum wage and resulting higher employer costs.
These factors disrupted the company’s liquidity and created serious financial strain.
Restructuring outcome:
Thanks to the efforts of the arrangement supervisor – attorney-at-law Michał Burek, LL.M., licensed restructuring advisor no. 1665 – and the MB/LAW support team, an agreement was reached with creditors. The arrangement was voted on and confirmed by the court on 3 April 2024.
- Secured creditor (Alior Bank S.A., mortgage): repayment continues under the existing mortgage loan schedule.
- Bank creditors (Groups 2, 4, and 5): full remission of interest accrued after the opening of the proceedings, for claims above PLN 250,000 and between PLN 100,000–200,000.
- Bank claims above PLN 250,000: repayment in 96 monthly instalments.
- Bank claims between PLN 200,001–250,000: repayment in 96 monthly instalments with fixed interest at 7% per annum.
- Remaining bank claims (PLN 100,000–200,000 and below PLN 100,000): repayment in 84 monthly instalments.
- Public law creditors (Social Security Authority and Tax Office): included in the arrangement – full repayment in 36 equal monthly instalments, with the first instalment deferred by 3 months.
If your business is facing liquidity risks or financial problems, contact MB/LAW. We approach each case individually and comprehensively. We negotiate with creditors, prepare practical restructuring proposals, and actively support entrepreneurs in restoring their financial stability.
