Elsta’s restructuring is over.
On 31 March 2021, the District Court for Kraków-Śródmieście in Kraków, VIII Commercial Division for bankruptcy and restructuring cases, validated the agreement between Elsta Sp. z o.o. and its creditors.
Please be reminded that during the meeting of creditors convened in the restructuring proceedings, 241 creditors voted in favour of the arrangement, while only 5 against, which clearly shows that we are not the only ones who believe in Elsta’s success.
Where are we today?
The past year has been the toughest in the company’s history. We have implemented immense organisational changes:
- We have adapted our offer to our new capabilities and the current market needs.
- We have created an entirely new project-centred structure supported by an efficient financial monitoring.
- We have increased the efficiency of works and procedures considerably.
- We have arranged and digitalised our stores.
- We have cut down the expenses.
- We have optimised technologies supporting our business.
All this in order to adapt the company’s size and strategy to the new business context in which we have found ourselves.
We have managed to keep the company afloat with great restructuring efforts while maintaining the business activity. It wouldn’t have been possible without the support of our Employees, Clients, Suppliers, Subcontractors and Financial Institutions.
It is impossible to address everyone individually. Nevertheless, we would like to thank you all for the support you have given us in this difficult period, for your patience and for the trust you have placed in us. Elsta has always been built on firm long-lasting relations.
What path have we walked?
The causes of the restructuring were complex. The losses in the Great Britain and in Sweden resulting from the bankruptcy of our business partners and dishonesty of the Swedish management board coincided with the organisational troubles in the Polish Elsta. We have not avoided the mistake of overinvestment after the success on the so-far biggest contract. As a result of misinformation, our biggest client terminated all at once all 17 ongoing contracts.
We have found ourselves in a particularly hard situation in which we could either surrender and declare bankruptcy or fight for Elsta in restructuring. Not many believed in us at the time, still we have taken the challenge and chose the second possibility.
One of the main objectives of the recovery process was, apart from paying the outstanding liabilities and finding a remedy for the financial condition of the company, was to maintain as many workplaces as possible while securing the company’s efficient operation.
We did what we could to find the best solution. We have also done our utmost to, wherever it was possible, secure jobs for those employees we had to make redundant.
What are we planning now?
In the months to come, our biggest priority would be to execute the agreement and pay all outstanding liabilities to our business partners. It will also be the time to strengthen organisational changes and rebuild the Elsta brand.
We are keeping development in mind. In a short while, we would like to present our new extended services adopted to the market needs.
Thank you for supporting us!