The number of restructuring proceedings is growing
The published Coface Report for 2018 shows that the number of open restructuring proceedings has increased compared to previous years. Out of 975 bankruptcy and restructuring proceedings, as many as 417 are open restructuring proceedings.
The highest number of accelerated arrangement proceedings was opened (259)- an increase by 24%, followed by remedial proceedings (114)- an increase by 30%. Least number of proceedings for approval of the agreement (5).
As compared to 2017, the number of applications for bankruptcy and restructuring in the manufacturing sector increased by 7%. The highest increase in proceedings (by 40%) was recorded in the transport sector, and the number of proceedings concerning construction remains at a similar level.
The report shows that the problem of insolvency concerns medium and small companies. According to the data available to Coface, 55% of the companies involved in the proceedings generated turnover between PLN 5 and 50 million. Then 31% were companies with annual turnover of up to PLN 5 million, and 14% were companies generating more than PLN 50 million of annual turnover.