ACTION S.A. under a protective umbrella
On 1 August 2016, the Management Board of ACTION S.A. announced the opening of reorganization proceedings. Opening of reorganization proceedings creates a protective umbrella which allows for a smooth operation of the company during the restructuring. Decision to file for the opening of reorganization proceedings stemmed from the need to protect the rights and interests of the Company, its counterparties and shareholders, facing the accumulation of adverse events occurring in the recent times.
On 01/08/2016, District Court for the Capital City of Warsaw in Warsaw, 10th Commercial Division issued a decision on the opening, upon the application of ACTION S.A., of reorganization proceedings within the meaning of the Act of 15 May 2015 Restructuring Law.
– Recent decisions of the Tax Office, which make us responsible for errors, omissions and shortcomings of officials and third parties, are unacceptable for us. I would like to stress that ACTION has always approached the issue of settling its tax obligations with the utmost diligence, which has been confirmed by numerous audits of tax authorities. Recent decisions of Tax Offices constitute, in fact, a punishment for activities of entities unrelated to ACTION. These decisions resulted in a decrease in credibility in the eyes of banks, insurance companies and suppliers. This in turn started to become a threat to the interests of the company and its shareholders, as well as to its counterparties and employees. We could not allow it, therefore, we decided to file for the opening of reorganization proceedings. This type of protective procedure is known and frequently used all around the world. In recent times, it has been used by such global companies as General Motors or Chrysler. In Poland, the Restructuring Law has been in force since the beginning of 2016. It is a relatively poorly known tool which allows to have the company protected against the loss of liquidity in the face of accumulation of adverse external factors – explains Piotr Bieliński, President of the Management Board of ACTION S.A. – A positive decision of the court protects our financial standing and allows us to conduct restructuring. Thanks to it, we are able to develop the activities of ACTION Capital Group in an undisturbed manner.
Under the restructuring proceedings, the Issuer has submitted a preliminary restructuring plan which provides for e.g.:
- resignation from or significant reduction in low-margin contracts and projects,
- focusing on the further development of the most attractive distribution channels.
In its court filing, the Management Board presented the following preliminary arrangement proposals:
- Inclusion of all creditors in one group,
- Grace period for payment of liabilities until the end of 2017,
- Remission of interest and any other incidental dues in full,
- Paying off creditors in the full amount of the principal within up to twenty equal quarterly instalments payable by the end of the month following the end of the first quarter of 2018.
- Our main objective is to avoid the Company's insolvency as a result of execution of Tax Office decisions, which we disagree with, and thus the protection of interests of the Company, its shareholders, counterparties and employees. We are open for developing optimal solutions for all the parties concerned. ACTION is one of the largest IT distributors in Poland. We employ around 1000 people. Every year, we pay tens of millions of zlotys to the State treasury. I am certain that we will be able to conduct the restructuring in an undisturbed manner. This will be for the benefit of all parties. – says Piotr Bieliński, President of the Management Board of ACTION S.A.