Successful restructuring of a company in the automotive sector

We represented foreign creditors in the cross-border insolvency proceedings of a Polish company. At first, the proceedings were leading towards the winding up of the creditor’s company, but the bankruptcy court then decided to turn them into composition proceedings.

Tangible collateral on property established for the principal creditor of the capital group was deemed ineffective, and the intercompany receivables of a total value of about 5 million euros were not taken into consideration in the insolvency proceedings. The Polish company was treated as an entity fully separated from the capital group.

In spite of that, after the procedure was changed, thanks to the efforts of all the participants of the bankruptcy proceedings and the co-operation between the company’s management board, the creditors and the administrator, it was possible to draw up a restructuring plan and develop composition proposals, which were accepted by the principal creditors. A composition arrangement was concluded, approved by the court and implemented. We assisted the shareholders of the company in its sale to a professional investor. The restructuring was successful and the company was saved. It is still considered a well-regarded company in the industry and it employs over 800 people.

Acquisition of the second authorization to provide payment services

We were formally responsible for the implementation process of systems of personal data protection and money laundering prevention, information security certification and adjustment to new regulations in the provision of payment services.

The aforementioned processes required reorganization of a joint-stock company business and its formal relationships with almost all of its business partners (especially with agents, payers, payees, banks, outsourcers, commercial agents and IT service providers). Finally, we submitted a request for authorization to provide payment services. Working on the request also involved drawing up and collecting documentation that allows the Polish Financial Supervision Authority to check if the direct and indirect shareholders of the company (which belonged to a complex capital structure comprised of a few hundred entities) provide a sufficient guarantee of prudent and stable management. The proceedings before the Polish Financial Supervision Authority ended with the acquisition of the second authorization to provide payment services in Poland and allowed our clients to continue their main business activities without disruption.