Chances of restructuring Gwarna Wroclaw are diminishing

Gwarna Wroclaw’s accelerated arrangement proceedings have been going on for more than a year now, and are promising poorly. Creditors may have to look for another solution.

Gwarna Wroclaw is a developer and former tenant of the former Best Western Premier City Center condohotel in Wroclaw. The company is in accelerated arrangement proceedings, which have been ongoing for more than a year. The restructuring proceedings were discontinued by the court of first instance. However, the company has filed a complaint against this decision with the court of second instance.

The court’s reasoning shows that Gwarna Wroclaw is unable to restructure successfully. The company will not be able to execute the arrangement and continuing the proceedings will lead to harming creditors. Therefore, it will be better for creditors to find other solutions than to persist in proceedings that portend badly.

The company generally presented three options for restructuring measures. The court of first instance assessed all of them as either unrealistic or detrimental to creditors.

Gwarna Wroclaw’s liabilities amount to nearly PLN 50 million. The company owes the most to creditors who bought the issued investment bills and bond guarantees – as much as PLN 23 million. Liabilities to investors who paid for premises in the hotel, but the company did not prescribe ownership rights to them are more than PLN 7 million. There are still aggrieved parties represented by Agata Lickiewicz’s law firm. Their liabilities amount to about PLN 1 million. The remaining liabilities relate to debts owed to the company’s contractors and owners of the premises, among others.

Source: https://www.pb.pl/deweloper-condohotelu-umyka-wierzycielom-1159693