Fewer bankruptcies thanks to simplified restructuring

The ban on foreclosures as part of the simplified restructuring (UPR) has helped some companies get out of trouble. In this way it has prevented an avalanche of bankruptcies.

This is one of the conclusions of a survey conducted by the Court Watch Polska Foundation. It verified to what extent the simplified restructuring procedure had worked during the year it was in effect. During that time as many as 1251 entrepreneurs took advantage of it. This is as much as 84% of all restructurings. Entrepreneurs who used this solution most often operated in agriculture, trade and industry. Applications to conclude an arrangement were filed in the case of 48% of simplified restructurings. Of these, 84 percent were granted by the courts. The courts refused to approve the arrangement in 6 percent of cases. Most often for formal reasons.

As many as 34 percent of UPRs opened between July 2020 and June 2021 were discontinued. The authors of the report were unable to determine the outcome of the proceedings for 18 percent of the cases.

Simplified restructurings of debtors in the manufacturing and retail sectors were the most successful. The least successful were companies from the logistics sector.

From the initiation of the UPR to the approval of the solution took on average 174 days, and the longest – 428 days. The longest waiting time for consideration was in courts in Piotrków Trybunalski, Jelenia Góra and Łódź. The best situation in this respect was in Częstochowa, Elbląg, Płock, Wałbrzych and Opole.

Source: https://www.pb.pl/szybka-naprawa-wstrzymala-lawine-bankructw-1135565