Case No.: KZ1A/GRz/13/2024
MB/LAW is pleased to announce the successful conclusion of restructuring proceedings for an agricultural enterprise specializing in closed-cycle pig farming.
The farmer had been operating since 2012 in animal husbandry, with annual net income of approximately PLN 30,000–40,000. The farm’s main business partners were slaughterhouses.
Financial difficulties arose due to:
- African Swine Fever (ASF) starting in 2019 – being placed in a restricted zone forced sales at only PLN 2.50/kg instead of PLN 5.00/kg,
- COVID-19 pandemic – increased operating costs without corresponding growth in sale prices,
- War in Ukraine – further increase in feed and electricity prices, again without higher selling prices.
As a result, the farm was unable to meet its financial obligations.
Restructuring outcome:
Through the efforts of arrangement supervisor attorney-at-law Michał Burek, LL.M., licensed restructuring advisor no. 1665, and the MB/LAW support team, creditors reached an agreement. The arrangement was adopted by vote and confirmed by the court on 29 May 2024.
- Secured creditor – Bank Spółdzielczy in Pleszew (working capital, investment, mortgage loans and overdraft AGRO PLON): repayment according to existing loan schedules.
- Secured creditor – Agrifinance sp. z o.o. (leasing loan): repayment according to schedule.
- Bank creditors: full waiver of interest from the arrangement date, as well as court and enforcement costs – repayment in 96 monthly instalments, with the first instalment deferred by 2 months.
- Private creditors with loans above PLN 8,000: full waiver of interest, court and enforcement costs – repayment in 96 monthly instalments, with the first instalment deferred by 3 months.
- Other private creditors: full waiver of interest, court and enforcement costs – repayment in 3 monthly instalments.
- Public law creditors (e.g. Social Security Authority, Tax Office): full repayment in 24 monthly instalments.
If you are facing liquidity problems or financial distress, MB/LAW can help. We approach each case individually and comprehensively: we negotiate with creditors, prepare realistic restructuring proposals, and actively support entrepreneurs and farmers in regaining financial stability.
