Restructuring and Insolvency Attorneys in Poland
Restructuring and Insolvency Attorneys in PolandUpdated on Tuesday 12th April 2016
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Insolvency proceedings in Poland
In 2015 Poland has amended its Restructuring Law allowing companies for simplified insolvency procedures. Under the new legislation, a debtor:
- - will pass a streamlined bankruptcy test;
- - will no longer be required to first liquidate debts related to taxes and social insurances.
The new law also provides for a longer the restructuring period and for a Polish company to benefit from enhanced protection against fraudulent arrangements.
During the insolvency stages, a company can make use of the two following procedures:
- - composition by self-administration which implies the business to run its activity under the supervision of a receiver appointed by a Polish court;
- - composition undertaken by an administrator appointed by the court.
Our restructuring and insolvency lawyers in Poland can provide you with detailed information about the new law which was enabled at the beginning of 2016.
Restructuring procedures in Poland
During the restructuring period, a Polish company can continue its business activity. It is, however, required to obtain the consent of the receiver appointed by the court for certain transactions. Among these transactions are real estate purchases and terminating certain commercial agreements. Also, the debtor is not allowed to use any of the company’s assets.
A company risking bankruptcy can also use the one-month restructuring period to reach agreements with its creditors. However, this period can be extended to three months. The arrangements must be approved by the court and two thirds of the creditors. Among the restructuring options a Polish company has are:
- - to reprogram the payment of the debt;
- - to change the debt for equity in the company.
If the arrangements are successfully carried out, the company will exit the insolvency stage.
Assistance in restructuring and insolvency matters in Poland
Our Polish attorneys can assist companies in financial difficulties by providing them legal advice in:
- - financial and operational restructuring;
- - assistance throughout the insolvency procedure;
- - debt recovery;
- - protection against insolvency.
If you need help in any insolvency or restructuring-related matters, do not hesitate to contact our law firm in Poland.