Restructuring law
A restructuring proceeding is only one of the alternative options to pay off debts. Consider all available options with us to identify a solution that will improve your company’s standing.
A chance for a new beginning
Rising inflation rates, climate and regulatory changes and the need to constantly tackle various issues to build back from the COVID-19 pandemic – all these pose great challenges that entrepreneurs are facing today. One of them is the need to ensure financial liquidity; importantly, liquidity risk does not invariably lead to bankruptcy. For some companies, the launch of a restructuring proceeding may prove a lifebuoy – a chance to relieve the company from its debts and spark off a new beginning.
Professional legal advice in the area of restructuring measures will facilitate the company’s health check and help design specific treatment. Draw on our extensive experience and professional support in these areas.
Are you afraid that your company might be affected by poor liquidity? Has your business partner defaulted on your contract? Sign up for a free call with our expert.
Restructuring law – areas of support
Our services offer for entrepreneurs in distress as a result of potential liquidity problems includes inter alia the following services:
- Identification of key factors driving loss of liquidity and recommended alternative short- and long-term rescue scenarios.
- Analysis of contracts with key business partners to identify any clauses that cause concern, with recommendations for alternative ways to renegotiate the existing terms or terminate your business relationship.
- Support to facilitate decision-making in your restructuring processes, including development of a strategy and planning alternative restructuring scenarios.
- Renegotiating the terms of your loan(s).
- Identification of new sources of finance and assistance to help you secure funding, including that available on preferential terms as well as grants/ subsidies, including state aid funds.
- Negotiations with your creditors to restructure existing debts along with drafting an agreement setting out new terms of repayment (e.g. partial remission, payment by instalment).
Where a formal restructuring proceeding is necessary:
- Assistance to choose the right type of restructuring proceeding and design of an adequate strategy.
- End-to-end support to guide you through the restructuring proceeding along with representation in court or before an administrator/creditors and other contractors.
- Drawing up documents for the purpose of your restructuring, including a proposed composition or restructuring plan.
- Design of a strategy of communication and mediation with creditors to agree on the content of a composition acceptable to at least the required majority of creditors (including e.g. a call centre for creditors; a workshop and a FAQ provided).
- Negotiation of the terms of a draft composition with creditors.
Our services offered to creditors reflect the circumstances of a given debtor.
Where the debtor has not initiated any formal restructuring or bankruptcy proceeding, our support will include inter alia:
- Verification of the debtor’s standing and their legal relationship with the creditor as well as the terms governing termination of their cooperation and prompt recovery of the loan.
- Design of the creditor’s optimal movements in respect of the debtor.
- Negotiation of the terms of repaying a loan.
- Drafting a restructuring agreement with the debtor.
- Representation for the purpose of an enforcement proceeding.
- Filing for the debtor’s bankruptcy.
Where the debtor has initiated a restructuring proceeding, we will:
- Represent you in court and before an administrator, debtor and other creditors.
- Take part in negotiating a composition.
- Vote on the debtor’s composition.
Where the debtor has declared their bankruptcy, we represent the creditor to help them recover their debts within the shortest possible time and in the highest possible amount.
Notwithstanding, we extend support to creditors to help them improve the quality of their contractor portfolio and identify any debtors that may default on their repayments. Our services include:
- Review of your contracts
- Screening your contractors in the light of any restructuring or bankruptcy petitions filed
Our team combines hands-on experience built up in transaction engagements with the practical knowledge from multiple restructuring projects.
This positions us to offer investors an array of services to help them acquire risk-laden assets, in particular:
- Design of an optimal legal structure of a transaction considering the restructuring factors.
- Drafting a petition for the target’s bankruptcy along with documents necessary to carry out the so-called pre-packaged insolvency procedure (pre-pack) to facilitate the acquisition of the entire business, its portion or selected assets on preferential terms.
- Due diligence of an entity that is being restructured or is to be restructured, with special focus on the risks arising from the target’s distress.
- Transaction negotiation with the seller, administrator, manager, receiver of the target and drafting transaction documents.
- Representation of the investor in the target’s restructuring proceeding (e.g. where the project is part of a restructuring plan).
Why EY Law Poland?
Individual approach
We accompany clients at every stage of the restructuring process, supporting them in achieving their goals. We always try to find the most effective and pragmatic solutions, while minimizing the risk and avoiding entering into formal, judicial restructuring proceedings.
Wide range of services provided
We provide advisory services to both entrepreneurs struggling with financial problems, as well as creditors and investors. We participate in institutional projects aimed at improving legislation and harmonizing national regulations with EU regulations.
Relations with the financial sector
At EY, we work with financial institutions and talk about key issues that are important in their decision-making process. We are in constant contact with private equity funds, thanks to which we know and understand their agenda.
Experienced and diverse team
We perfectly understand the complexity of business repair processes, which is why we offer support in all its important aspects. EY's unique capabilities allow us to provide the highest standard of service provided by complementary advisors with competence in the field of law, tax and finance.
International and recognized brand
EY's involvement increases the credibility of the debtor in the eyes of stakeholders and helps stabilize the business. International recognition of the advisor is particularly important when negotiating with foreign creditors and financial institutions.
Dedicated support service center
At EY, we have a dedicated team that supports advisors in repetitive and complex processes during the proceedings, m.in through comprehensive correspondence services and the creation of a dedicated call center for creditors. The adopted model makes it possible to optimize many processes in the course of proceedings without compromising the high quality of services provided by EY.
Our strength is synergy.
We combine many years of experience of legal advisors and attorneys with knowledge of the business principles of operation of our clients, thanks to which we significantly increase the efficiency of their activities.
EY's interdisciplinary team consists of experienced professionals who focus on solving issues related to liquidity and solvency issues in all sectors of the economy. Thanks to the support of specialists from many areas, we adapt our resources to your expectations and needs as best as possible.
Together, let's develop the most beneficial scenarios for businesses to give them a fresh start.
EY Law Poland Team
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