Cinkciarz (Conotoxia Sp. z o.o.) has lost its status as a national payment integrator. By the end of the year, it must cease operating all bank accounts and payment cards due to the mixing of its own funds with customer funds. At the same time, the company can still conduct currency exchange activities. For some time, Cinkciarz, using its own funds, began concurrently seeking external financing at the level of even 800 million zloty. Furthermore, it was seeking a banking license. These actions seem very nervous and lead to the question of what is next for the company?
Przemysław Furmanek from the Lege Restrukturyzacje law firm comments on the situation.
It is possible that due to liquidity problems and the need for changes in the structure of the business, Cinkciarz will decide on a restructuring. Thanks to this, it will acquire appropriate financing and time to adapt to the KNF (Polish Financial Supervision Authority) recommendations. Additionally, thanks to restructuring, the company will not have to settle obligations that arose before the opening of proceedings (until the approval of the arrangement). At the same time, it will be able to use current income to regain competitiveness in the market.
Restructuring opportunity and threat
Initiating restructuring proceedings – in which Cinkciarz customers would be included in the settlement – would mark the beginning of its end. In such a situation, freezing customer funds for months of ongoing proceedings would destroy confidence in the company for many years. Therefore, the only logical solution would be a partial settlement within the approval proceedings – such proceedings can be opened, bypassing the court, from day to day. Another option is accelerated arrangement proceedings, which would not involve customers. Thanks to this, they could continue to use Cinkciarz services without restrictions, and at the same time, the company’s contractors could expect the company to propose extending payment deadlines or renegotiating cooperation conditions.
The situation of Cinkciarz’s customers
The threat of insolvency is always dangerous for customers. It is no different in this situation. Especially since the funds managed by Cinkciarz are not covered by the Bank Guarantee Fund. Moreover, accumulating the company’s own funds and customers on joint bank accounts reduces the security of deposits in the event of possible executions. And in the event of bankruptcy, it would force each customer to make claims to assert their rights.
Regardless of how large the confusion is around Cinkciarz.pl in the context of the Polish Financial Supervision Authority or the National Bank of Poland, restructuring of the company may have a salutary effect on it. As a result, the entity will have a chance to improve its current financial liquidity, find time to determine the direction of changes and their implementation, and at the same time, it will soothe the market and increase credibility.
Source: https://managerplus.pl/cinkciarz-traci-status-integratora-platnosci-co-dalej-ze-spolka-62066
