Companies listed in the National Debt Register (KRD) that went bankrupt in the second half of last year left behind financial arrears totaling PLN 34.9 million. Adding to this figure, another PLN 104.2 million in unpaid obligations from businesses undergoing restructuring brings the total losses incurred by creditors to PLN 139.1 million. Many of these insolvent companies had shown signs of financial distress well in advance—17% appeared in the KRD two years before declaring bankruptcy, and 25% were listed a year before their collapse.
A Shift Towards Restructuring Over Bankruptcy
According to data from the Central Economic Information Center (COIG), Polish courts have declared relatively few corporate bankruptcies in 2024. This trend reflects a growing preference for debt restructuring over outright bankruptcy. This pattern has persisted for several years, stabilizing the number of annual bankruptcy declarations at around 400. In 2023, courts issued 433 such rulings, only 25 more than the previous year. However, the statistics worsen when considering sole proprietors who filed for bankruptcy as consumers. COIG reports that in 2024, 2,454 entrepreneurs took this route, a sharp increase from 1,206 cases in 2023.
Despite this rise in personal bankruptcies, restructuring proceedings have gained popularity as they enable businesses to avoid collapse and continue operations after financial rehabilitation and partial debt reduction.
“The fact that companies are choosing restructuring over bankruptcy is a positive signal for the economy. It demonstrates greater awareness among entrepreneurs and their determination to save their businesses and jobs. Restructuring offers companies a chance to survive difficult times, maintain operations, and rebuild their market position. However, their creditors often face losses, as they do not receive full payment for their services. To avoid dealing with financially unstable partners, businesses should regularly verify the financial credibility of their contractors,” explains Adam Łącki, CEO of the National Debt Register of the Economic Information Bureau.
Industrial Sector Hit Hardest by Bankruptcies
Although Poland’s economy was one of the fastest-growing in the European Union last year, not all industries benefited from this economic growth. The year 2024 was particularly challenging for transportation, industrial, construction, and IT companies. Rising energy, raw material, and labor costs, coupled with declining demand in traditional export markets like Germany, impacted their operational stability.
As a result, the industrial sector recorded the highest number of bankruptcies, with 104 companies going under. Retail businesses followed with 96 bankruptcies, construction firms with 56, and transportation companies with 33.
Among the companies that declared bankruptcy in the second half of 2024, 135 were listed in the KRD—accounting for one-third of all bankrupt firms. Of these, 12% had been listed in the registry two years before their bankruptcy, accumulating PLN 5.1 million in unpaid obligations. A year before going under, 17% of these businesses had outstanding debts totaling PLN 13.1 million. Moreover, 28% of insolvent companies entered the KRD just three months before filing for bankruptcy, amassing PLN 31.7 million in debt.
At the time of their bankruptcy rulings, these firms collectively owed PLN 34.9 million in unpaid invoices recorded in the KRD. The bulk of these debts—PLN 32.5 million—belonged to limited liability and joint-stock companies, while sole proprietors accounted for PLN 2.4 million.
Industries With the Highest Debt Levels
The industrial sector tops the list of industries with the highest financial liabilities, with unpaid obligations amounting to PLN 8.6 million. It is followed by the construction sector (PLN 7 million) and professional services, including consulting, accounting, and tax firms, which collectively owe PLN 4.8 million.
Regional Debt Distribution
Nearly one-third of all financial arrears are attributed to companies based in the Mazowieckie province, where bankrupt businesses left behind PLN 10.8 million in unpaid debts. Firms in Śląsk and Wielkopolska contributed another PLN 4 million each to the total debt. The lowest amount of unpaid obligations was recorded in the Świętokrzyskie region, with just PLN 9,300.
The most severe financial problems affected businesses operating in cities with populations between 300,000 and 500,000, which accumulated over 40% of total debt—equivalent to PLN 19.2 million.
“The biggest losses from dealing with bankrupt companies listed in the KRD were suffered by retail businesses, which were owed PLN 8 million. The construction sector faced losses of PLN 6.3 million, while the industrial sector lost PLN 3.7 million. Additionally, unpaid energy supply invoices totaled PLN 5.9 million, and overdue lease and credit installments amounted to PLN 5.6 million. These figures highlight the risks of excessive trust. Entrepreneurs should base their partnerships on verified financial data. Regularly checking new contractors and monitoring existing ones through credit agencies helps identify businesses already facing financial trouble. This should serve as a red flag. If businesses still choose to work with such partners, they should secure their interests, for example, by demanding upfront cash payments,” advises Adam Łącki.
Record-High Restructuring Cases
In the past year, a record-breaking 4,500 companies opted for restructuring, making it the highest number ever recorded. As restructuring becomes a preferred alternative to bankruptcy, the number of formal bankruptcy rulings is expected to continue declining.
Among the 2,305 businesses undergoing restructuring, 948 (41%) were listed in the KRD. Their creditors faced total losses of PLN 104.2 million. Two years before initiating restructuring, 18% of these companies had already been flagged in the debt register. A year before filing for restructuring, 25% of these firms had outstanding obligations, while 35% were registered as debtors just three months before beginning the restructuring process.
Similar to bankruptcies, industrial firms accumulated the most unpaid obligations during restructuring, amounting to PLN 20.1 million, followed by the construction sector (PLN 18.3 million). Retail businesses owed PLN 18 million, and transportation companies had debts of PLN 16.5 million.
“The scale of bankruptcies and restructurings underscores the importance of early financial risk detection and proactive management. Regular financial monitoring, revenue diversification, cost control, financial reserves, and early negotiations with creditors can significantly reduce the risk of insolvency. Exploring alternative financing options, such as leasing or factoring, can provide immediate liquidity, especially when traditional bank loans are difficult to secure. Factoring, for instance, allows businesses to quickly unlock cash tied up in invoices, improving financial stability. Companies should not wait until a crisis to seek additional financing. Implementing strategic financial solutions in advance enhances business resilience and competitiveness,” explains Emanuel Nowak, an expert at the factoring firm NFG.
Financial institutions—including banks, insurers, and leasing companies—are owed the most by restructuring businesses, with claims totaling PLN 28.8 million. Retail sector creditors are awaiting payments of PLN 23.5 million, while construction firms are owed PLN 7.9 million. Additionally, debts owed to industrial sector suppliers amount to PLN 7 million, fuel suppliers PLN 10.6 million, and energy providers PLN 6.2 million. Another PLN 6.5 million is owed to securitization funds, which purchased debts from primary creditors, mainly banks.
The highest concentration of restructuring-related debts is found in Mazowieckie, where businesses owe PLN 21 million. Companies in Wielkopolska and Śląsk must return PLN 11.8 million and PLN 11.3 million, respectively, to their creditors.
