Number of bankruptcy and restructuring proceedings increased in first half of 2018
Research presented in the Coface report for the first half of 2018 shows that the number of bankruptcy and restructuring proceedings increased by 21 per cent. The increasing number of proceedings does not result from a change in bankruptcy law or the introduction of restructuring law, but from liquidity problems of enterprises.
The most common type of restructuring proceedings is accelerated composition proceedings, but the number of reorganisations is also increasing. Moreover, the number of bankruptcy proceedings aimed at liquidation of assets of a given entity, and not at repairing its operations, is increasing.
The report points out that in many sectors there is considerable competition, which makes it impossible to increase margins, despite the increase in costs, e.g. due to the increasing salaries of employees. Moreover, it has been pointed out that enterprises will be affected by deteriorating economic conditions, as well as by the introduction of the so-called split payment, which will result in a deterioration of their financial liquidity.
Coface forecasts that the number of restructurings and bankruptcies in Poland will be 29 per cent higher at the end of 2018 compared to the previous year.