Successful restructuring of a food manufacturing company.

It is almost a year since the arrangement was approved in the restructuring proceedings of a client in the food production industry. The second report on the implementation of the arrangement has just been submitted, so it is safe to say that the restructuring has been a success.

It all started with the troubles that affected the client immediately before the pandemic broke out. Due to a complete halt in production and a drastic drop in demand for the Client's products, avoiding the liquidation of the company and the restructuring process was quite a challenge.

During the pandemic, investments were halted, especially in the catering production sector. Despite this, it was possible to find a stable investor who leased the Client's company, modernised its plant and resumed production. What is more, this was his first such large investment in Poland, which testifies to the trust he placed in our client and the investor's faith in the success of the restructuring.

Thanks to the investor, the client's production facility was saved. It was also possible to convince the creditors to support the arrangement, and some of them even agreed to an almost complete write-off of their claims. Why? Because they saw great value in continuing to work with our client's company. They were not wrong - the plant now provides work for around 150 people and much of the production is for export, which further increases the security of the business and allows us to secure the best conditions for our contractors. The lease of the company was structured in such a way as to secure the fulfilment of a long-term agreement. Some of the creditors were already paid in half or in full in the first month of the implementation of the arrangement.

In the course of the restructuring proceedings, there were of course challenges such as reconciling the interests of many creditors - including preferential creditors (such as farmers) and secured creditors who could block the restructuring. In parallel, we had to litigate with some creditors, all of which we managed to conclude amicably. There were also legal problems, such as the court's refusal to take into account the votes of some creditors voting in favour of the arrangement, while at the same time taking into account a significant vote against the State Treasury - the Head of the Tax Office. It was not without a complaint against the decision to discontinue the restructuring proceedings, which was upheld in its entirety (the uncounted votes in favour of the arrangement were taken into account and the vote of the Tax Office against the arrangement was annulled).

Thanks to this restructuring, the client not only avoided bankruptcy - it managed to expand its business, provide new jobs in the region and new markets for its products.

The project was managed by the Romanowski i Wspólnicy team led by legal advisor and restructuring advisor Maciej Stasiewicz.