Case No.: KR1S/GRz/71/2024
MB/LAW is pleased to announce the successful completion of restructuring proceedings for a farm specializing in the cultivation of grain and corn.
The debtor has owned the farm since 2012 (ownership acquired through a life annuity agreement). The land was cultivated with grain and corn. Although the debtor did not work the farm personally, it was cultivated by his mother and cousin. The debtor received income from agricultural subsidies under the direct payment support system and from rent (lease to his mother, registered in the ARiMR system).
Between 2013–2015, the debtor worked the land himself. However, due to his full-time job as an international truck driver, he later leased the land to his mother while remaining the farm’s owner.
Causes of financial difficulties:
- COVID-19 pandemic: restrictions prevented the debtor from working as a driver, causing a complete loss of income and inability to service debts,
- Attempted financial rescue through payday loans in 2023, which only increased the overall debt burden,
- Farm income (lease rent and subsidies) was insufficient to cover liabilities.
Result of the restructuring process:
Thanks to the actions of the supervisor – Attorney-at-Law Michał Burek, LL.M., licensed restructuring advisor (No. 1665) – and the MB/LAW support team, creditors agreed to the plan, voting was successfully carried out, and the restructuring plan was confirmed by the Court on 5 August 2024.
- Claims above PLN 100,000: full waiver of all interest, court and enforcement costs, and ancillary claims accrued until confirmation. Remaining claims to be repaid in full in 108 monthly instalments.
- Claims between PLN 40,001 and PLN 100,000: full waiver of all interest, court and enforcement costs, and ancillary claims accrued until confirmation. Remaining claims to be repaid in full in 72 monthly instalments, with a 1-month grace period.
- Claims up to PLN 40,000: repayment of principal, interest, and ancillary claims accrued until confirmation in 60 monthly instalments, with interest set at WIBOR 3M, and a 1-month grace period.
If you face liquidity problems or financial distress, we encourage you to contact us. We treat every case individually and comprehensively: we negotiate with creditors, prepare practical restructuring proposals, and actively support entrepreneurs in regaining financial stability.
