The Ministry of Justice is now preparing a draft amendment to the restructuring and bankruptcy law. The new provisions, in line with Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 (known as the Second Chance Directive), are to facilitate the continuation of the company’s operations despite its difficult situation.
Given that Poland took advantage of the opportunity to delay the implementation of the Second Chance Directive, the new provisions have to be introduced by 17 July 2022. The main goal of the planned legislative changes is to protect businesses against bankruptcy and save jobs.
Recently, the situation of companies in distress has been improved by the introduction of a simplified restructuring procedure under Shield 4.0, which, however, ceased to operate at the end of November 2021. In its place, fundamental changes were made to the proceedings for the approval of arrangement, adjusting it to the regulations introduced in connection with the coronavirus pandemic. Now, due to the need to introduce further changes to implement the Second Chance Directive, the Ministry is proposing further changes on the basis of which – as officials inform – companies are to gain even greater support in the form of faster and more efficient proceedings while maintaining the principle of trust in business.
Key changes to the restructuring procedure:
The planned changes should be viewed as positive, because their aim is to increase the effectiveness of and accelerate the restructuring proceedings. Currently, the draft amendment is awaiting the entry into the agenda of the Council of Ministers.
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