DELTA legal together with PwC prepared an approved reorganization plan for LICHNA TRADE CZ, s.r.o., a Czech company engaged in mechanical engineering and metal processing.

A tough economic situation and the subsequent bankruptcy of LICHNA TRADE CZ, which the client wanted to resolve by maintaining operations and keeping as many workplaces as possible open, cost all participants a lot in preparation for the reorganization. Reorganization is a highly formalized process with many complex rules. Our goal was to provide the client with the most legally advantageous position to prepare the best financial and economic solution.

A huge amount of documents needed to be analysed in preparation for the reorganization plan. It was necessary to thoroughly examine the company’s assets and activities and to communicate everything with the creditors, many of whom had conflicting interests and used all legal steps at their disposal to enforce them. Finding a solution that was acceptable for everyone, economically viable and legally possible required not only the involvement of consultants from various areas, but also a diversified legal team, which allowed us to assess and balance all the measures considered in detail and prepare an optimal reorganization plan. We believe that not only the company but also the creditors will make the most of it. The excellent cooperation between the consultants and the client throughout the project ensured a successful new beginning for LICHNA TRADE CZ after several years of court proceedings.

“We are extremely pleased that we were able to participate in the restructuring of LICHNA TRADE CZ together with PwC,” DELTA legal partner Michal Zahradník said. “In view of the complex procedural rules, high legal requirements and coherence of various economic measures, you cannot successfully prepare a reorganization plan without the close cooperation of many experts. PwC proposed an optimal economic strategy to overcome the current crisis and ensure the future development of the company. This became the basis of the reorganization plan, which thanks to the excellent teamwork and support of the new investor was approved. We would like to thank everyone who participated in the project for their commitment and professionalism and we wish LICHNA TRADE CZ the best of luck going forward.”