{"id":6070,"date":"2024-08-05T10:56:04","date_gmt":"2024-08-05T08:56:04","guid":{"rendered":"https:\/\/pmrsa.pl\/?p=2755"},"modified":"2025-01-21T15:43:00","modified_gmt":"2025-01-21T15:43:00","slug":"what-is-debt-restructuring","status":"publish","type":"post","link":"https:\/\/pmrsa.pl\/en\/what-is-debt-restructuring\/","title":{"rendered":"What is debt restructuring"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><strong>Debt restructuring is a process,<\/strong> in which the restructured entrepreneur and the creditor (often with the involvement of a restructuring advisor or mediator) negotiate new terms for the repayment of the existing debt(s). <strong>The purpose of restructuring is to make it easier for the restructured entrepreneur to repay its liabilities<\/strong> by adjusting their amount to its current financial situation and avoiding a situation of insolvency (bankruptcy).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Both parties can agree on various modifications to the terms and conditions, such as:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>extending the repayment period or changing the repayment schedule - spreading the commitment over a longer period of time, which reduces the amount of instalments.<\/li>\n\n\n\n<li>interest rate reduction - a reduction in the interest rate, leading to lower monthly instalments.<\/li>\n\n\n\n<li>writing off part of the debt - the creditor may agree to write off a certain amount of the debt.<\/li>\n\n\n\n<li>conversion of debt into other forms, e.g. shares - for larger <a href=\"https:\/\/pmrsa.pl\/en\/the-furniture-industry-is-diving-into-debt-companies-are-laying-off-workers\/\" title=\"\">companies this may include debt conversion<\/a> for shares in the share capital.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Restructuring of debt (liabilities) can also take place under one of the four proceedings provided for in the Restructuring Act,<\/strong> i.e. proceedings for approval of an arrangement, accelerated arrangement proceedings, composition proceedings, <a href=\"https:\/\/pmrsa.pl\/en\/change-of-administrator-in-the-restructuring-proceedings-of-dayli-polska-sp-zoo\/\" title=\"\">sanitation proceedings<\/a> and concern both sole traders and legal persons. The choice of the type of procedure depends on the time required and the complexity of the changes sought.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Importantly, the restructuring of debt (liabilities),<\/strong> can take place as part of a partial arrangement, i.e. we can restructure our debt and talk about <a href=\"https:\/\/pmrsa.pl\/en\/quick-restructuring-come-to-an-agreement-with-creditors\/\"  data-wpil-monitor-id=\"847\">restructuring only with selected groups of creditors<\/a> such as public creditors (restructuring of liabilities to ZUS, Tax Office, National Revenue Administration (KAS) or PFR) or financial creditors (Banks, Loan Funds, Leasing or others).<\/p>","protected":false},"excerpt":{"rendered":"<p>Restrukturyzacja zad\u0142u\u017cenia to proces, w ramach kt\u00f3rego restrukturyzowany przedsi\u0119biorca i wierzyciel (cz\u0119sto przy udziale doradcy restrukturyzacyjnego lub mediatora) negocjuj\u0105 nowe [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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