Who is a licensed restructuring advisor?
A licensed restructuring advisor is a professional authorised to perform statutory functions in restructuring and insolvency matters under Polish law. The Polish statutory title is doradca restrukturyzacyjny. In English, it is most often translated as “licensed restructuring advisor”, although in international practice similar roles may also be described as insolvency practitioner, restructuring practitioner or court-appointed supervisor. These terms are not fully interchangeable, because the Polish role is defined by specific national legislation.
The licence is granted by the Minister of Justice and persons holding it are entered in the official list maintained under the Act on the Licence of a Restructuring Adviser. A licensed restructuring advisor may act in proceedings conducted under the Polish Restructuring Law and Bankruptcy Law, including as an arrangement supervisor, court supervisor, administrator or trustee in bankruptcy, depending on the type of proceedings and, where applicable, the court’s decision.
The role combines legal, financial, organisational and risk assessment competences. A licensed restructuring advisor evaluates the debtor’s economic situation, verifies claims, prepares or reviews restructuring plans, supervises the debtor’s activity, supports negotiations with creditors and, where required, manages or oversees assets. In court-supervised proceedings, the advisor also performs functions intended to protect the interests of creditors and ensure the lawful course of the process.
What does a licensed restructuring advisor do?
The work of a licensed restructuring advisor is connected with situations in which a business, entrepreneur or other debtor faces insolvency, threatened insolvency, liquidity difficulties or a need to reorganise liabilities. The advisor may participate in restructuring proceedings aimed at preserving the enterprise, improving cash flow and reaching an arrangement with creditors. Depending on the case, the advisor may also be involved in bankruptcy proceedings, where the focus is usually on liquidation of assets and satisfying creditors in accordance with statutory rules.
In restructuring matters, a licensed restructuring advisor may help assess whether restructuring is justified, which procedure is suitable and what measures are needed to restore the debtor’s ability to perform obligations. This may include analysing the company’s liabilities, reviewing contracts, identifying assets, assessing creditor structure, preparing proposals for repayment, supporting the preparation of a restructuring plan and coordinating formal steps required by the court or by law.
The advisor’s work may relate to various areas of law and business practice, including commercial law, corporate law, tax issues, employment matters, secured transactions, debt recovery, financial reporting and disputes with creditors. In more complex cases, restructuring also requires cooperation with attorneys, tax advisors, accountants, auditors and management boards, especially where the debtor operates as a company or belongs to a wider capital group.
A licensed restructuring advisor may also play an important role for creditors. Creditors may need assistance in assessing arrangement proposals, protecting their voting rights, evaluating the debtor’s restructuring plan, challenging incorrect claim recognition or deciding whether participation in an arrangement is economically justified. In insolvency-related matters, timely and well-documented creditor action may affect recovery prospects.
When is it worth using the help of a licensed restructuring advisor?
Support from a licensed restructuring advisor is particularly important when a company has overdue liabilities, enforcement proceedings, pressure from banks or suppliers, loss of liquidity, a deteriorating balance sheet or a risk that management may be accused of delaying insolvency-related decisions. The advisor can help determine whether the business is still capable of restructuring or whether bankruptcy-related options must be considered.
Entrepreneurs may need such support before filing a restructuring application, during negotiations with creditors, when preparing arrangement proposals or when assessing the legal consequences of continuing business despite financial distress. Management boards should also consider professional advice where failure to react in time may expose them to civil, corporate, tax or, in exceptional cases, criminal liability.
Private individuals may encounter a licensed restructuring advisor mainly in bankruptcy-related matters or in situations involving significant debt, enforcement or the need to assess available legal options. Although consumer debt cases differ from business restructuring, professional assessment can still help organise documentation, evaluate risks and understand the consequences of formal proceedings.
Early consultation is often decisive. A short review of the debtor’s financial and legal position may help avoid procedural errors, ineffective negotiations, loss of assets, disputes with creditors, personal liability of managers or unnecessary financial losses. In restructuring, timing matters because the available options usually narrow as enforcement, arrears and operational problems progress.
Support of the law firm in restructuring and insolvency matters
Legal support in matters involving a licensed restructuring advisor may include both advisory work before proceedings and representation during formal restructuring or bankruptcy processes. The legal and financial aspects of such cases should be coordinated, because decisions taken in one area often affect creditor relations, contracts, employment, tax settlements and corporate governance.
Support of the law firm in the field of restructuring and insolvency assistance includes in particular:
- assessment of the debtor’s legal and financial situation before restructuring or bankruptcy proceedings,
- analysis of threatened insolvency or insolvency and related management board risks,
- selection of an appropriate restructuring path and preparation of the procedural strategy,
- cooperation with licensed restructuring advisors, accountants, auditors and tax advisors,
- preparation and review of restructuring documentation, including arrangement proposals,
- support in negotiations with creditors, banks, suppliers and public authorities,
- representation of debtors, creditors, shareholders or management board members in restructuring and insolvency-related disputes,
- advice on the impact of restructuring on contracts, employment, security interests and corporate obligations,
- legal assessment of transactions made before insolvency or restructuring proceedings,
- support for creditors in claim submission, voting, objections and recovery strategy.
Need assistance from a licensed restructuring advisor or legal support in restructuring proceedings? Contact us.
See also
- Business restructuring
- Corporate restructuring plan
- Debt Recovery
- Commercial Law