Karol Czepukojć | In Principle

The pre-packaged insolvency (“pre-pack”) may become an effective debt recovery tool for financial institutions who are secured creditors, when the debtor is insolvent and the lender seeks to quickly cash out its collateral at the best price. This can also apply when in-court restructuring proceedings for the debtor are commenced but then discontinued.

At the beginning of 2016 a new regulated profession of “Restructuring Adviser” was created. The role is to be performed by persons professionally qualified for position of office holder in restructuring and bankruptcy proceedings. Restructuring Advisers are required to have knowledge of law, economics, finance and management. Their professional qualifications are confirmed by licence. Currently over 1,050 professionals hold a Restructuring Adviser licence in Poland.

Acquiring assets through a bankruptcy proceeding may be more beneficial for the buyer—and not only for purely economic reasons.

A creditor of a company may seek to hold a member of the management board liable in damages if a bankruptcy petition for the company is not filed on time.

Companies nowadays are frequently late in paying their suppliers, which in turn fall behind in paying their own creditors. But sometimes even a few days’ delay in payment can force a debtor to file a bankruptcy petition.

The Supreme Court of Poland held that recognition of French procédure de sauvegarde in Poland – one of the proceedings to which Regulation No. 1346/2000 applies – leads to a result that is consistent with Polish public policy.