Bankruptcy or restructuring of Module Technologies?
Module Technologies, a company dealing in large-scale modular construction, has been trying to restructure unsuccessfully for over a year.
Over the past several months, the company tried to open various types of restructuring proceedings. All attempts were rejected by the court. Therefore, the company decided to implement a new restructuring procedure, namely a simplified restructuring procedure, which is largely extrajudicial.
As part of the simplified restructuring, there was an agreement between the company’s creditors, which allowed for the submission of a court application for approval of the arrangement. Earlier, however, at the request of ZUS, the court declared the company bankrupt. According to the company, the declaration of bankruptcy was groundless as it took place after the start of the restructuring proceedings. In this situation, it seems of key importance to decide whether it was justified to open a simplified restructuring in relation to a company that has had financial problems for at least a year. This type of restructuring was to be used by companies whose liquidity problems result from the advent of the coronavirus pandemic.