In this exclusive interview for the Lawyer Monthly Legal Awards, we are accompanied by Jagoda Wojciechowska, a restructuring expert at RBBC, to explore her journey in the fields of insolvency, bankruptcy, and restructuring law. Jagoda shares the key factors that inspired her to pursue these areas, the unique impact of this legal framework on Polish businesses, and RBBC's role in successfully navigating complex cases. She also delves into recent legal developments, challenges businesses face during restructuring, and the future of Poland's insolvency landscape.
What inspired you to focus on insolvency, bankruptcy, and restructuring law, and how do these areas uniquely impact businesses in Poland?
I was drawn to insolvency and restructuring law because of its significant influence on business survival and economic stability. In Poland, these areas are crucial for companies in financial distress, as the legal framework provides opportunities for recovery, not just failure. Guiding businesses through restructuring helps preserve jobs, rejuvenates industries, and fosters long-term stability. The ability to merge legal strategy with financial insight was a perfect fit for my skill set and passion.
Additionally, when I obtained my restructuring advisor license in 2016, a landmark amendment to Polish restructuring and bankruptcy law came into force. This pivotal change allowed me to grow professionally alongside the evolving legal landscape. It provided an extraordinary opportunity to gain both comprehensive knowledge and practical experience. The evolution of this law, in line with Poland's EU accession and the implementation of EU directives, has made Polish insolvency law dynamic and highly effective in addressing financial challenges. This combination of legal development and practical application continually inspires me in my work.
Can you share a recent case where RBBC successfully navigated a complex insolvency or bankruptcy situation?
One of our recent successes involved a major player in the fertilizer industry. Following the war in Ukraine, the company faced severe financial distress due to overstocking at high prices. We navigated one of Poland's largest restructurings in this category of proceeding in 2023, securing court approval in the first instance while maintaining the core business and preserving all jobs. The case was particularly complex due to international suppliers and fluctuating markets, but we managed to stabilize the company and it now ranks among the top 100 fertilizer suppliers in Poland.
How has the landscape of insolvency and bankruptcy law in Poland evolved in recent years, and what future changes do you anticipate?
Poland's insolvency landscape has undergone significant changes, particularly following the 2016 reforms, which separated restructuring law from bankruptcy law. One key development during the COVID-19 pandemic was the introduction of a simplified restructuring procedure, allowing for out-of-court restructuring. These reforms have given businesses more flexible tools to avoid liquidation, resulting in a marked increase in restructuring cases.
Looking ahead, I expect further digitalization of insolvency processes, driven by EU directives, as well as greater emphasis on preventive restructuring. The rise of AI and advancements in digitalization will also accelerate procedures, especially in international contexts, making them more efficient and interconnected.
What challenges do companies most commonly face when undergoing restructuring, and how does RBBC help them navigate these challenges?
The biggest challenges companies face are securing financing during the restructuring process and managing creditor expectations. Many businesses struggle to convince creditors that restructuring will lead to a better outcome than liquidation. At RBBC, we approach these challenges by crafting detailed financial recovery plans and leveraging our negotiation expertise to build creditor trust. Our multidisciplinary approach, combining legal, financial, and strategic insights, allows us to develop solutions that benefit all parties involved.
What trends do you see in the Polish corporate and financial legal sector, and how is RBBC adapting to meet these new demands?
We can see increasing demand for cross-border restructuring solutions, particularly as more international companies invest in Poland. Another trend is the digitalization of legal processes, including insolvency proceedings, which has created a need for legal firms to adopt new technologies. At RBBC, we're embracing these changes by strengthening our international partnerships and integrating digital tools into our practice to ensure that we remain at the forefront of these developments.
How do you balance the interests of creditors and debtors in insolvency proceedings, given the legal framework?
Balancing the interests of creditors and debtors is a delicate task, but it's essential for a successful restructuring. Polish law provides a framework that protects the rights of creditors while giving debtors the opportunity to recover. At RBBC, we focus on creating transparent, mutually beneficial arrangements. By presenting a clear, data-driven recovery plan, we can often show creditors that supporting restructuring will lead to a better outcome than liquidation. Open communication and trust-building are key to finding common ground.
How did your experience working at BlackRock shape your understanding of the international financial environment, and how do you apply that knowledge to your work at RBBC?
My time at BlackRock provided invaluable insights into the global financial markets and corporate strategy. I learned how large international corporations navigate financial challenges and develop strategies for growth. This experience equipped me with a global perspective that I now apply at RBBC, especially when dealing with cross-border restructuring cases or international creditors. Understanding global market dynamics helps me create tailored strategies that align with both local and international financial environments.
You've completed several training courses in bankruptcy and restructuring. How do these continuous professional development efforts contribute to your work, and what skills have you found most valuable?
Continuous professional development has been instrumental in keeping me at the forefront of legal and financial trends. The most valuable skills I've gained include advanced negotiation techniques, financial analysis, and the ability to design complex restructuring plans. These skills are crucial when managing high-stakes insolvency cases, where the success of the restructuring often hinges on precise financial management and clear communication with all stakeholders.
However, I consider my international experience to be the most valuable, both from my previous job at BlackRock, which I mentioned earlier and my current position as an Officer in the Insolvency Section of the International Bar Association, along with my membership in INSOL Europe, have greatly enriched my perspective. This experience allows me to compare legal systems, apply advanced legal solutions from more developed frameworks, and refine international negotiation strategies. Understanding cultural differences is particularly important when dealing with international creditors or cross-border cases, and these insights have proven invaluable in my practice.
What advice would you give to Polish businesses to strengthen their financial resilience and prepare for potential economic downturns?
My advice is to take a proactive approach to financial management. Companies should consistently monitor their financial health and implement preventive measures, such as diversifying revenue streams and fostering strong relationships with creditors. Identifying financial challenges early and embracing restructuring as a strategic tool-rather than waiting for a crisis-can be the key to long-term stability. At RBBC, we advocate for businesses to view restructuring not as a last resort, but as an opportunity for renewal and growth.
