Ursus announced late that he had filed a lawsuit with the court to begin an expedited arrangement. The court agreed with such a scenario.
The request was sent to the court in Lublin on September 14, but it was not published by the company after almost two months. Why?
"The disclosure of information on the submission of an application (…) would result in legal action by certain creditors to reduce the company's current assets, which would consequently prevent the company's operations, conduct restructuring procedures and cause material damage to the shareholders and other creditors of the company." – Ursus, was approved by the Polish Financial Supervisory Authority.
The board of directors of the company acknowledged that it was confronting the insolvency caused by the "accumulation of adverse events in the market environment in Poland and abroad".
It is very difficult for the bank to extend the financing of the company to the current extent (approximate the maturity of loans), and the level of implementation of grants under measure 4.1 was low. RDP 2014-2020 and the implementation of the contract with the Zambian Industrial Development Corporation Limited has been postponed.
In accordance with the court decision and the already established restructuring plan, the period of the fourth quarter of 2018-2023 refers. Due to the decision of the court, the company received protection for the duration of the restructuring plan, so that after its execution, it will be prepared to pay the debt and continue the operation.
– We decided to apply the law on restructuring and reorganization, since its main goal is to cure the company for the benefit of its creditors, as well as for employees, performers and other stakeholders – comments by Michał Nidzgorski, vice president of Ursus.
In the restructuring plan of Ursus, measures were taken, inter alia, to repay the creditors through: the sale of assets, the increase in operating revenues; optimizing the company's operating costs and increasing margins.
In the application to the court, the division of creditors into four groups, depending on the scope and type of business that is carried out with the company. Repayment of liabilities has been taken since the 13th month of the agreement.
In recent months, the company's forecasts have declined sharply.