Instrumenty prawne przewidziane dla podmiotów gospodarczych zagrożonych niewypłacalnością
Legal instruments available to business entities at risk of insolvency

Author(s): Filip Remlein
Subject(s): Economy, Business Economy / Management, Micro-Economics, Law on Economics
Published by: Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu
Keywords: legal instruments;risk of insolvency;extrajudicial proceedings;judicial proceedings;restructuring;legal protection;bankruptcy proceedings;
Summary/Abstract: The survival and development of an enterprise are measured not only by the profits achieved but also by its solvency. Key factors that pose a threat to an enterprise’s ability to continue its operations may arise from internal decisions made within the organization or external circumstances over which the enterprise has limited or no influence.The purpose of this chapter is to discuss legal instruments aimed at supporting business entities at risk of insolvency. This chapter presents both extrajudicial and judicial instruments for resolving a debtor’s financial crisis. Extrajudicial proceedings include a number of activities that can help the company regain financial stability and avoid legal proceedings. The advantages include lower costs and a shorter time to solve the problem. In addition, in the case of extrajudicial solutions, entrepreneurs have more control over the company and they are the ones who make decisions regarding its operations. It is also important that extrajudicial solutions are usually more discreet and can help protect the company’s reputation. On the other hand, the disadvantages of extrajudicial proceedings include the lack of a formal framework and legal security, which can lead to misunderstandings or the lack of effective enforcement of the agreed terms. In addition, the lack of a clearly defined procedure canlead to ambiguity and a chaotic course of the process of improving the company’s financialsituation, which in turn can result in a lack of expected results. Further considerations focuson the restructuring process as an effective tool enabling enterprises to overcome financial crises. Restructuring facilitates the renegotiation of obligations, cost reductions, and improved liquidity, often in collaboration with creditors. This approach allows businesses to regain stability, avoid bankruptcy, and enhance their prospects for continued operation. The concluding section of the chapter is dedicated to bankruptcy, understood as a finallegal remedy. This formal process protects creditors’ interests by enabling them to recover atleast a portion of their claims through the liquidation of the debtor’s assets.

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