Restructuring is not a shame – the story of a Warsaw printing house

The beginning of the avalanche in Warsaw's Mokotów

The printing house owner, Mr. Robert, had been running his business for 8 years. Everything was going well until energy prices jumped by 34% in one quarter. On top of that, there were payment delays from two key contractors. In October 2023, the cash register was short 42,000 PLN for current obligations. Instead of seeking help, Robert tried to patch the hole with payday loans for the company, which only made matters worse. The loop began to tighten very quickly.

When Wisła Restructuring House took over the case, there was only 3,800 PLN in free funds in the printing house's account. This was not even enough to insure the machines. Total debt was 187,400 PLN, including arrears to Social Security and the tax office. Robert was convinced that the only way out was to declare bankruptcy and sell off the machinery. We knew we were saving what he had built for years and that there was still room to maneuver.

We did a quick audit that took us 4 business days. It turned out that the core of the business was healthy – the printing house had steady orders, only the margin was eaten up by debt service costs. We had to act immediately to block the possibility of account seizures by the bailiff. The rules are clear: audit, plan, action. Without this, the company would have ceased to exist before the end of the year. (By the way, most owners wait three months too long before calling us).

Instead of closing the business, the way of talking to creditors had to change. Numbers don't lie, but they require a plan.

Talking to the bank is our daily reality

The biggest burden was the lease for two Heidelberg machines. The monthly installment was 12,400 PLN. The bank did not want to hear about postponement because Robert had already been 14 days late with a payment once. We took over these talks in mid-November. We presented the bank with a realistic financial forecast for the printing house for the next 7 months. We showed that if they took the machines, they wouldn't even recover 40% of the debt value at auction.

Negotiations lasted 11 days. We won so-called lease holidays for a period of 4 months, where Robert only paid the interest portion – about 1,100 PLN instead of the full installment. This gave the company financial breath in the amount of 45,200 PLN over the entire protection period. This money was immediately directed to the purchase of raw materials so that the printing house could fulfill Christmas orders for calendars and catalogs.

Robert no longer had to answer calls from the debt collection department himself. We will take this burden off your shoulders – that is what we promised at the first meeting and that is what happened. We focused on formal restructuring, while the owner could return to monitoring print quality. During this time, we prepared settlement proposals for the remaining 12 creditors, including paper suppliers from Warsaw's Białołęka.

Arrangement with suppliers and cost reduction

The paper suppliers were furious. Arrears with the largest one were 67,000 PLN. We proposed an arrangement: payment of 83.4% of the debt in 14 equal installments, but subject to further deliveries for cash with a 5% discount. Does it seem illogical? For the supplier, it was the only chance to recover most of the money. If the printing house collapsed, they would get zero, because the machines were leased anyway.

In parallel, we introduced cuts within the company. We didn't fire any of the 7 people, but we changed the shift system to avoid working during hours with the highest energy rates. This brought a saving of 3,200 PLN per month. We also resigned from renting an additional warehouse, which allowed us to keep another 2,400 PLN in the pocket every month. Every such amount was transferred to a sub-account designated for the arrangement's repayment.

In December 2023, for the first time in six months, Robert paid employee salaries in full and on time. That was the turning point. Team trust returned, and rumors of bankruptcy on the local market stopped. Restructuring is not a shame – it is a professional tool for repairing mistakes that happen to everyone who risks their own capital.

Suppliers prefer to get 84% of the money in installments than 0% from a trustee. It's simple math that banks understand.

Effects after 7 months of work

Today, seven months after starting the process, the Mokotów printing house operates without disruption. They have already paid 6 of the 14 arrangement installments. Their margin grew by 8% thanks to better paper waste management and new energy contracts. Robert no longer nervously looks for cash on Thursdays before payday. He has a financial plan laid out for every week, and we monitor its implementation once a month.

We regained liquidity that the owner thought was lost forever. The entire restructuring process cost a fraction of what the company would have lost on contractual penalties and default interest. The most important thing, however, is that 7 families still have a source of income, and Warsaw did not lose a solid craft company with traditions. If your company has similar problems, remember: the earlier we start, the more options remain on the table.

At Wisła Restructuring House, we don't promise miracles, but we guarantee a reliable audit and tough negotiations. Talking to the bank is our daily reality and we know which arguments to use so they stop treating you like a debtor and start treating you like a partner for conversation. Robert is now our regular client for financial consulting, and together we are planning to replace the oldest machine in 2025.

Concluding this story, it's worth noting one thing: the restructuring worked because the owner stopped pretending the problem didn't exist. He admitted to us: 'I don't have money for electricity.' That was the first step to success. If you also feel you are losing control over invoices, don't wait for a court summons. We can start with a short audit of your situation as early as this week.

The hardest step is admitting you need a plan. The rest is a matter of tough negotiations.