The position of the security agent in in-court restructuring proceedings
What banks should pay attention to when granting consortium financing or considering restructuring of consortium debt.
Pre-packaged insolvency: A new debt recovery tool for financial institutions in Poland?
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.
The regulated profession of Licensed Restructuring Adviser in Poland
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.
Restructuring Law and amended Bankruptcy Law: Scope and essence of changes
The main provisions of the Restructuring Law of 15 May 2015 enter into force on 1 January 2016. It will serve one of the foundations of commercial law in Poland, enabling effective restructuring of insolvent enterprises.
Shareholder loans under the amended Bankruptcy Law
Systemic amendments to Poland’s Bankruptcy & Recovery Law enter into force on 1 January 2016.
Negative equity—the balance-sheet test—as grounds for bankruptcy
A company whose obligations exceed its assets should file a bankruptcy petition. If it does not, the creditors may file a petition and then seek to hold the members of the debtor’s management board liable for their claims. A rule that generates lots of practical problems remains in force in Polish bankruptcy law.
Restructuring should begin with a forensic audit
A forensic audit at the start of the restructuring process should enable the company to uncover irregularities and take the right remedial measures.
Assignment of receivables as a restructuring tool: A case study
Debt restructuring may be approached using solutions involving an assignment of receivables. In practice, depending on the particular factual situation, assignment may offer an attractive alternative to more traditional restructuring methods.
Corporate restructuring and creditors’ involvement in debtor’s corporate structure
Participation in the authorities of debtor companies gives creditors a greater assurance that restructuring programmes will be properly implemented, but also entails certain burdens, risks and obligations.
Shareholder’s liability for creditor’s loss resulting from subsidiary’s failure to file a bankruptcy petition
The degree to which a company’s creditors are satisfied may depend in large measure on timely filing of a bankruptcy petition. But sometimes the dominant shareholder will pressure the members of the management board to refrain from filing for bankruptcy.
Wave of bankruptcies among Polish companies: An opportunity for bargain-hunters?
Acquiring assets through a bankruptcy proceeding may be more beneficial for the buyer—and not only for purely economic reasons.
Protecting the interests of creditors against dishonest actions by debtors
A creditor affected by asset-stripping by a debtor doesn’t have to remain a passive victim of dishonesty.