12 October 2020
R&I update - October 2020 – 3 of 3 Insights
The simplified proceedings for the approval of an arrangement (postępowanie o zatwierdzenie układu) is the newest restructuring procedure available under Polish law.
It was introduced to the Polish legal system by the so-called Shield 4.0 enactment (ie Act of 19 June 2020, Journal of Laws of 2020, item 1086).
Here's a round-up of the key information you need to know about Poland's new simplified restructuring procedure.
The simplified proceedings for the approval of an arrangement can be applied for by the debtor until 30 June 2021. The new process allows the debtor to individually open the simplified restructuring proceedings and to subsequently notify the Court and Business Gazette (Monitor Sądowy i Gospodarczy).
As a result of this notification, the debtor is given four months to seek consent of creditors to its restructuring proposals and to submit the motion for approval of arrangement with the court.
The most significant consequence of the debtor's individual notification with the Court and Business Gazette is that existing enforcement and injunctive proceedings against this debtor are suspended. Furthermore, no new enforcement and injunctive proceedings can be initiated, which is also a notable outcome.
Yes. The debtor's protection can be challenged in court by a creditor if the notification of opening the restructuring proceedings' consequences are detrimental for the creditors.
To discuss any of the issues raised in this article in greater detail, please contact me or a member of our Restructuring and Insolvency team.
by Nick Moser