Adrian Dzwonek, a licensed restructuring advisor from JGA Law Firm, has entered into an agreement with a debtor to supervise the course of proceedings for the approval of an arrangement (known as simplified restructuring proceedings). This institution is increasingly utilised by entrepreneurs. It was introduced by the Act of 19 June 2020, on Subsidies for Interest on Bank Loans Granted to Entrepreneurs Affected by the Effects of COVID-19 and on Simplified Proceedings for the Approval of an Arrangement in connection with the occurrence of COVID-19 (referred to as Shield 4.0).
In this case, the debtor is a partnership engaged in construction work related to the construction of residential and non-residential buildings. Upon analysing the legal and economic situation of the company, it was decided to take advantage of the simplified form of restructuring, which largely takes place without the involvement of the court. The deterioration of the partnership’s situation was affected by latent defects in the ongoing major investment, as well as prolonged acceptance procedures for completed projects, resulting in payment backlogs.
According to the regulations, the debtor and the supervisor of the arrangement should strive to adopt a feasible arrangement within a period of up to 4 months, satisfactory to the creditors.
Adrian Dzwonek acted as the leader of the advisory team on behalf of the JGA Law Firm.
