Settlement with two banks for a furniture manufacturer from Masovia
The furniture manufacturer lost its main recipient. We convinced banks to restructure debt amounting to 480k PLN, which allowed for a business pivot.
Meble Styl-Pol stood on the brink of bankruptcy when their key recipient from Germany declared bankruptcy in July 2024. The company was left with a bank debt of 483,200 PLN and a lack of orders for subsequent months.
The challenge
The production plant near Płońsk employed 8 skilled carpenters and had a modern machine park taken on lease. After losing the main contract, which generated 68% of annual revenue, the company lost financial liquidity in just 34 days. Two commercial banks terminated loan agreements, demanding immediate repayment of 214,000 PLN and 269,200 PLN.
The owner, Mr. Marek, received 5-6 calls a day from collection departments. There was a real risk that machines worth 310,000 PLN would be seized by a bailiff by the end of the year. In mid-October 2024, only 3,240 PLN remained in the company account, which didn't even allow for paying Social Security contributions for employees.
Our approach
The Wisła Restructuring House team entered the company on October 14, 2024. In the first 4 business days, we conducted a thorough asset inventory and analysis of fixed costs. We determined that the company has a chance to survive if it quickly changes its production profile from mass-produced desks to premium garden furniture for individual orders.
Instead of waiting for court letters, we initiated contact with the restructuring departments of both banks ourselves. We presented them with hard data: the liquidation value of the machines was 42% lower than their value when production continued. We used this argument to convince bank analysts that the client's bankruptcy was the worst financial solution for them.
The solution
We negotiated an out-of-court settlement that blocked collection processes for 13 weeks of negotiations. Ultimately, the banks agreed to combine the obligations into one repayment plan with a 15-month moratorium on principal installments. During this time, the company only pays interest, which reduced the monthly cash burden from 14,250 PLN to 1,870 PLN.
Additionally, we won the remission of penalty interest in the amount of 7,340 PLN. The time gained and released cash funds allowed Mr. Marek to purchase the first batch of exotic wood and launch a new production line. The entire formal process, from audit to signing annexes, lasted exactly 92 days.
Results
Meble Styl-Pol avoided bailiff enforcement, kept all machines, and maintained the entire team of 8 employees. Currently, it is fulfilling the first orders for the new season.
Timeline
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October 2024Financial audit and appraisal of machine park near Płońsk.
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November 2024Halt of collection actions and filing of restructuring applications.
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December 2024Negotiation of settlement terms with two commercial banks.
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January 2025Signing of annexes and launch of the new payment plan.
"When banks started sending final notices, I was ready to close the workshop after 9 years of work. Wisła Restructuring House took over the talks, and I could focus on production. They saved my business from the bailiff."