When concluding a transaction, everyone wishes to succeed. It is only natural. However, a prudent entrepreneur should ensure that their interests are always properly secured, also at the times when the sun is shining and the business prospers. Even the smallest of actions taken sufficiently in advance may turn out immensely important. Careful preparation of relevant documents before a transaction is concluded considerably reduces the risk of negative consequences the transaction may have in future. A lawyer specialised in business and bankruptcy law is able to promptly identify any potential risks arising from contracts and transaction structures, giving an entrepreneur an opportunity to take adequate preventive measures. This applies also to proper protection of interests in case of the other party becoming insolvent or going bankrupt.
Consulting new projects with legal advisers, although a well-established practice in the West, unfortunately has not yet become common in Poland, to the detriment of Polish entrepreneurs.
Not only is it more beneficial to prepare proper documents and ensure protection of interests in case a transaction is not concluded successfully or goes awry, but also much more cost-effective than contracting legal services at a later stage to remedy a problem that is already there.
As far as bankruptcy and restructuring law is concerned, creditor’s position depends not so much on what that creditor does after a debtor goes bankrupt or enters into reorganisation, but rather on the measures protecting their interests, taken beforehand, as early as at the time of transaction. Proper protection of one’s interests may prove crucial for recovering all claims in the event of the other party suffering financial difficulties.
✓ Our lawyers’ experience includes participation in numerous mergers, acquisitions and investments in assets.
✓ We have reviewed draft contracts for their resistance to adverse events in the parties’ life (stress-tests) and analysed the effectiveness of the securities provided.
✓ We have contributed to a number of due diligence studies by verifying the validity of contracts and safeguards, as well as the security of board members of the parties to the transaction.
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