Other proceedings

Proceedings

Dayli Polska Sp. z o.o.

Status: Completed
Sąd: District Court Kraków - Śródmieście

Dear Sirs,

We inform you that the District Court for Krakow-Śródmieście in Krakow, 8th Commercial Division for Bankruptcy and Reorganisation changed the administrator in the sanation proceedings for Dayli Polska spółka z ograniczoną odpowiedzialnością w restrukturyzacji with its seat in Krakow (case file ref. No. VIII GRs 1/16) by appointing PMR Restrukturyzacje S.A. with its seat in Warsaw (KRS No.: 0000546300) as the administrator in the place of the existing administrator – Zimmerman Filipiak Restrukturyzacja S.A. in Warsaw.

Therefore, we kindly request you to contact the new administrator – PMR Restrukturyzacje S.A.in all matters related to Dayli Polska Sp. z o.o. w restrukturyzacji.

Contact details of PMR Restrukturyzacje S.A.:

www.pmr-restrukturyzacje.pl

ul. Emilii Plater 28, piętro II, 00-688 Warszawa

T: 22-30-05-105

F: 22-30-05-106

dayli@pmr-restrukturyzacje.pl

 

 


24.05.2016

Change of the administrator in the sanation proceedings of Dayli Polska Sp. z o.o. w restrukturyzacji

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The District Court for Krakow-Śródmieście in Krakow, 8th Commercial Division for Bankruptcy and Reorganisation changed the administrator in the sanation proceedings for Dayli Polska spółka z ograniczoną odpowiedzialnością w restrukturyzacji with its seat in Krakow (case file ref. No. VIII GRs 1/16) by appointing PMR Restrukturyzacje S.A. with its seat in Warsaw (KRS No.: 0000546300) as the administrator in the place of the existing administrator – Zimmerman Filipiak Restrukturyzacja S.A. in Warsaw.

Therefore, we kindly request you to contact the new administrator – PMR Restrukturyzacje S.A.in all matters related to Dayli Polska spółka z ograniczoną odpowiedzialnością w restrukturyzacji w restrukturyzacji.

Contact details of PMR Restrukturyzacje S.A.: ul. Emilii Plater 28, piętro II, 00-688 Warszawa

T: +48 22 300 51 04 T: +48 22 300 51 05 F: +48 22 300 51 06 (Fax)

E: kancelaria@pmr-restrukturyzacje.pl

24.05.2016

Information on the request for changing the administrator

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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.

01.04.2016

Information of the Administrator on the application for discontinuation of the sanation proceeding of Dayli Polska Sp. z o.o.

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On 1 April 2016, the Administrator submitted an application for discontinuation of the sanation proceeding of Dayli Polska Sp. z o.o. (hereinafter: the “Company”).

Zimmerman Filipiak Restrukturyzacja S.A. was appointed Administrator in sanation proceeding of Dayli Polska Sp. z o.o.under the decision of the District Court for Krakow - Śródmieście in Krakow, 8th Commercial Division for Bankruptcy and Reorganisation of 1 February 2016 (case file No. VIII GR 1/16).

A request for discontinuation of the sanation proceeding is, pursuant to the Restructuring Law Act of 15 May 2015 one of the key instruments that ensure the security of the creditors of the restructured debtor. The Restructuring Law gives to the debtor an opportunity to open sanation proceedings easily and full protection against the creditors during 12 months but only provided that the debtor maintains the ability to pay any costs and liabilities which originated after the opening of the proceedings, on an ongoing basis.

The obligation of the administrator is to control the situation and submit a request for discontinuation of the sanation proceeding immediately when it becomes obvious that the debtor lost its ability to pay such costs. In this way, the Administrator fulfils its obligation to care for the interests of the creditors and prevent further depletion of the debtor’s assets.

The measure of the due fulfilment of the obligation of the Administrator, which are actions in the best interest of the creditors of the insolvent debtor, is how quickly the Administrator diagnoses the situation. The consequence is submission of a request for discontinuation of the proceeding, if the debtor is not able to perform the restructuring scheme, as well as to pay the current costs of its operation.

In the case of Dayli Polska sp. z o.o., the direct reason for the failure of the restructuring scheme is the failure of the Company’s owner to grant funding to buy merchandise worth at least PLN 4.5 million, despite earlier declarations and the relevant provision in the restructuring scheme. On the other hand, the proposed guarantees turned out to be insufficient for the suppliers, and sales under consignment conditions did not provide any opportunity to reach turnover and margins sufficient to pay the costs of employment, let alone the rent and other costs of maintaining the stores. It meant that it was necessary to file a request for discontinuation of the restructuring proceeding. The Administrator informs you that the submission of the request does not mean a definite (or immediate) end of the restructuring process. At the moment, talks on additional funding are conducted with the owner of the Company and third parties so that it would be possible to pay all the current (and outstanding) liabilities accrued after 1 February of this year. Provided that the Company’s liability to conduct uninterrupted activity is restored, it will be possible to continue the restructuring process.

26.02.2016

Taking over the assets of the Company and funds from court bailiffs

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As the Administrator, we are now in the course of taking over the Company’s assets and funds form court bailiffs.

The priority for the Administrator is to recover the Company’s funds to urgently pay due salaries and rent, and other costs of the Company’s operation and bills for February 2016.

Simultaneously, the Administrator is working on a restructuring scheme and is preparing a record of assets, and record of the Company’s debts.

The Administrator reminds you that, pursuant to the applicable laws and regulations, as of the date of opening the sanation proceeding, it is forbidden to initiate any execution proceedings against the Company’s assets and take any actions in the proceedings which were stayed as of that date.

At the same time, the Administrator points out that all claims for the period before 01 February 2016 (taking the statutory exclusions into consideration) will be satisfied under the terms and condition of the arrangement through a vote by the creditors on the arrangement in the sanation proceeding.