We inform you that, after conducting an in-depth analysis of the situation of Dayli Polska Sp. z o.o., Zimmerman Filipiak Restrukturyzacja S.A. Filed a request for a change of the administrator in the sanation proceeding of the company. The request was accepted and, on 24 May 2016, the Court for Krakow-Śródmieście, 8th Commercial
Division for Bankruptcy and Restructuring changed the administrator in the sanation proceedings. PMR Restrukturyzacje S.A. became the new administrator.
The course of the sanation proceeding of Dayli is inextricably linked to the future fate of the Kerdos Group companies which, like Dayli, are experiencing very difficult times. The opening of the sanation proceeding for Dayli on 11 May 2016 is an opportunity for the companies.
Undoubtedly, an effective restructuring of Dayli, which is the main asset of Kerdos, is the condition for an effective restructuring of Kerdos.
However, for Dayli, the only chance to conduct the restructuring correctly is to use the aid of investors. In the situation in question, this means the aid of the Dayli’s owner which is the biggest shareholder of Kerdos. The opening of a sanation proceeding for Kerdos results, therefore, in the fact that the actions of the administrator in one of those sanation proceedings indirectly or directly affect the other. In the opinion of Zimmerman Filipiak Restrukturyzacja S.A., it is more than reasonable to appoint the same entity as the administrator in both sanation proceedings. At the same time, ZFR emphasises that the issue of cooperation with the owners of the restructured company is an extremely important element for the course of the Dayli’s sanation proceeding. Only the assumed financial aid of the owners for the sanation process gives any chance that the restructuring will be successful.
The attitude of the biggest creditor of Dayli who is secured in rem on Dayli’s assets had also an impact on the decision to file a request for changing the administrator. It is also inclined to make an attempt at continuing the restructuring of the company with the new administrator. Despite numerous difficulties which occurred during the sanation of Dayli, it seems that, under certain conditions, the restructuring of the company will be more profitable for its creditors than pursuing the claims in bankruptcy proceedings. The consequences of discontinuation of the proceeding, both for the debtor’s enterprise as a whole and for the debtor’s creditors can be so serious that, even if the chances of successful restructuring with the changed administration and (conditional) support of the owner, are slim, in the opinion of ZFR, attempts at continuing the sanation proceeding constitute the only reasonable solution.
The analysis of the main assumptions of the new restructuring scheme submitted by the debtor – on condition that Dayli stores are supplied with goods intended for sale – leads to a conclusion that its correct implementation with the financial aid of the owner (as the current restructuring scheme provides for) may be a positive stimulus for the entire enterprise.
The submission of the request for a change of the administrator in the sanation proceeding by Zimmerman is, therefore, a logical consequence of the circumstances described above. It would be unjustified to divide the function of the administrator in the sanation proceedings conducted for companies which are so closely related like Dayli i Kerdos. The change of the administrator in the proceeding conducted for Dayli should not affect its course and the new administrator is, in ZFR’s opinion, ready to duly continue this proceeding and, in compliance with the principle of caring about the interests of all participants to the proceeding, the administrator left its position being aware that it transferred the function to a competent entity which will continue the process of the Company’s restructuring.