In Poland, because of Covid-19, a special simplified restructuring procedure was implemented. According to the law, until 30 June 2021, an insolvent or at risk of insolvency debtor who has concluded an agreement with a restructuring advisor to supervise the course of proceedings for the approval of an arrangement may announce in the special journal Monitor Sądowy i Gospodarczy the opening of proceedings for the approval of an arrangement conducted on the basis of the provisions of the Act of 15 May 2015. - Restructuring Law.
The announcement may be made after the debtor has prepared
- arrangement proposals and
- list of claims,
- list of disputed claims
and handing them over to the arrangement supervisor.
The date of making the announcement shall be the date on which the proceedings for approval of the arrangement are opened.
As of the date of making the announcement until the date of discontinuance or termination of the proceedings for approval of the arrangement, inter alia:
1)the enforcement proceedings concerning claims specified by law initiated before the date of the opening of the proceedings shall be suspended by way of law;
2)the commencement of enforcement proceedings and the enforcement of a decision to secure a claim or an order to secure a claim arising from claims specified by law shall be prohibited.
Claims specified by law under the rules indicated therein are included in the arrangement even without the creditor's consent.
At the request of the creditor, the debtor or the supervisor of the arrangement, the court shall waive the effects of making the announcement specified by law if they lead to the harm of the creditors.
Independently of the collection of votes, according to the procedure specified by the Act - Restructuring Law, the supervisor of the arrangement may appoint a date for a creditors' meeting to vote on the arrangement. The creditors' meeting is chaired by the supervisor of the arrangement.
If there are technical possibilities, voting at the creditors' meeting may be conducted using electronic means of communication.
The proceedings to approve the arrangement shall be discontinued by force of law if no application for approval of the arrangement is submitted to the court within four months of the date of the announcement.
At the request of the debtor, creditor or any other person having a legal interest therein, the court shall issue a decision stating that the proceedings are discontinued by force of law.
From the date of making the announcement until the date of discontinuance or termination of proceedings for approval of the arrangement, the debtor may perform ordinary management activities. The consent of the supervisor of the composition agreement is required for any activities that exceed the scope of ordinary management. Consent may also be given after the activity has been performed, within thirty days from the date of its performance. An act exceeding the scope of ordinary management made without the required consent is invalid.
Another advantage of this procedure is that, under certain conditions, as a result of the timely announcement of the opening of proceedings for the approval of the arrangement, the liability of certain persons on the grounds specified in the act is excluded.
Ewa Kosowska-Czapla
Attorney-at-law