This new instrument for restructuring an enterprise was introduced in Poland on 24 June 2020.
Its main purpose is to facilitate and accelerate restructuring proceedings – and is closest in its form to arrangement approval proceedings.
Given the large number of cases in the courts this is currently the most effective way of restructuring a company.
Its main advantages:
- It’s fast – it takes a maximum of 4 months
- It provides protection against enforcement
- It protects against the termination of major contracts
- It enables remote voting on an arrangement
The course of the procedure:
- A contract is concluded with a restructuring advisor
- Arrangement proposals are declared
- An announcement is published in the Court and Commercial Gazette (MSiG – thus providing protection against enforcement)
- A meeting of creditors is organized (remotely)
- An application for an approved arrangement is filed with the court
- The arrangement is approved by the court.
- The arrangement with creditors goes into effect.
One of our experts – advocate Mariusz Purgał – helped draft the legislation on the simplified restructuring procedure as part of the Insolvency and Bankruptcy Law Section (INSO) of the Allerhand Institute.
Our Managing Partner – attorney-at-law Marcin Wierzbicki is a licensed restructuring adviser, thanks to which we can offer a full range of simplified restructuring (UPR) services.