The number of initiated restructuring proceedings is growing

The number of initiated restructuring proceedings against entrepreneurs is systematically growing.

Last year, there was a simultaneous increase in the number of restructuring proceedings initiated by entrepreneurs and a decrease in the number of declared bankruptcies. There were nearly 2,800 open restructuring proceedings and only 360 announced bankruptcies. Experts agree that these are record figures. Searching for the reasons for this state of affairs, they point to three aspects. Firstly, financial support offered as part of the anti-crisis shields. Secondly, the introduction of a new type of restructuring, namely the simplified restructuring procedure. Thirdly, the technical problems of the National Debt Register (KRZ).

Among the largest companies that decided to take corrective action were: Idea Money, a factoring company, Mróz, a meat and sausage producer, and LoanMe, a non-bank loan company. On the other hand, the largest enterprises that declared bankruptcy were dominated by: Pol-Mot Holding, a company operating in the automotive industry, Elsen, a producer of electricity and heat, and GO Sport Polska, a chain of sports stores.

It is worth noting that the correlation between the number of restructuring proceedings and the number of bankruptcies proves that entrepreneurs have begun to see the benefits of making decisions to restructure their businesses and implementing these decisions. Unfortunately, further forecasts do not inspire optimism. Well, experts predict a significant increase in the number of declared bankruptcy of companies.

Source: https://www.pb.pl/padl-rekord-niewyplacalnych-firm-1173841