Analysis of restructuring proceedings in the first quarter of 2018
Zimmeran Flipiak Restructuring in cooperation with SpotData platform carried out analysis of restructuring proceedings in the first quarter of 2018. The survey shows that entrepreneurs are more and more willing to use restructuring proceedings. In the first quarter, the Courts opened 105 restructuring proceedings, i.e. by 16% more than last year. The accelerated arrangement proceedings is the most popular.
The authors of the report also pointed out that due to delays in announcing court decisions in the Court and Commercial Monitor it is difficult to observe in real time the number of instituted proceedings. The average difference between the date of the decision and the announcement in the Monitor is about 20 working days.
In addition, the report points out that bankruptcies are still more common than restructuring, but that the gap has narrowed considerably. According to Dr.Patryk Filipiak, restructuring advisor at Zimmerman Filipiak Restructuring, the reasons for the increase in the number of reorganisation proceedings are two.
On the one hand, rising labour and material costs, leading to declining margins in trade and construction, and payment bottlenecks, make it difficult for an increasing proportion of operators to meet their obligations, despite the boom. On the other hand, the restructuring procedure is becoming more and more popular, which for many companies provides an opportunity to get out of the excessive debt trap faster, although it is often also a form of a simple escape from liabilities – explains Dr Patryk Filipiak.
Source: https://www.pb.pl/restrukturyzacje-trwaja-za-dlugo-911243