Disturbing predictions
Experts make alarming forecasts regarding the number of declared bankruptcies.
The data collected by the Central Economic Information Center (COIG) clearly indicate the formation of a specific type of dependence consisting in an increase in the number of opened restructuring proceedings with a simultaneous decrease in the number of declared bankruptcies. Well, in 2022, 2,379 restructuring proceedings were opened and 360 bankruptcies were declared. Compared to 2021, this means 26% more restructurings initiated and 14.5% fewer announced bankruptcies. This should be optimistic, but a thorough analysis and expert opinions dampen this optimism. Experts point out that the increase in the number of opened restructuring proceedings is a result of the appearance of the arrangement approval procedure (PZU), which replaced the popular simplified restructuring procedure (UPR). As in the case of the UPR, the main advantages of PZU include: speed of proceedings, out-of-court nature and obtaining protection against executions, which occurs when the proceedings are opened. Experts also point out that the above data is affected by the end of spending by entrepreneurs of funds received under the anti-crisis shields. Currently, the market is verifying which companies have actually been strengthened by the financial support obtained, and which companies have only been extended by this support. The launch, in December 2021, of the National Register of Indebtedness (KRZ) was not without significance for the quoted figures. The beginnings of its operation caused many technical problems that prolonged the formal handling of proceedings.
Experts emphasize that in the near future the correlations between the number of initiated restructurings and announced bankruptcies will change. Well, some part of the currently pending restructuring proceedings will not end successfully and will bring entrepreneurs closer to making a decision on the need to declare bankruptcy.
Source: https://www.prawo.pl/biznes/restrukturyzacja-firm-zamiast-upadlosci-dane-za-2022,519688.html
