Simplified restructuring proceedings

Proceedings for the approval of an arrangement under the simplified procedure begin with the conclusion of an agreement with a restructuring advisor who acts as the arrangement supervisor. Our law firm prepares a complete set of documents, including a draft arrangement, proposals for the repayment of debts, and an application for approval of the arrangement. We then make an announcement in the National Debt Register, which triggers legal effects such as protection against enforcement and termination of key agreements. From the date of the announcement, the debtor acts within the limits of ordinary management and may hold talks with creditors to vote on the arrangement.

As part of the proceedings, the arrangement supervisor oversees the entire procedure, including setting the arrangement date and ensuring that the arrangement proposals comply with the provisions of the Restructuring Law. After the votes on the arrangement have been collected, our team prepares a set of documents necessary for the approval of the arrangement in connection with the occurrence of insolvency grounds and submits them to the court. It is the court that approves the arrangement, the effects of which are binding on all entities included in the list of claims.

The KWKR team has practical experience in conducting simplified proceedings for the approval of arrangements, both for sole proprietorships and commercial companies. Mariusz Purgał, attorney-at-law and restructuring advisor, participated in the work on the regulations governing these proceedings as part of the INSO Section of the Allerhand Institute. Marcin Wierzbicki, legal advisor and also restructuring advisor, supervises projects involving debtors with a dispersed debt structure, where protection against harm to creditors and proper planning of the vote on the arrangement are of particular importance.

We have represented entities at every stage of the proceedings, from the opening of proceedings and the announcement of the arrangement to the final approval of the arrangement by the court. We also act as arrangement supervisors, ensuring that the procedure complies with the law and the interests of creditors. We have successfully handled cases involving disputed and secured claims, as well as situations requiring court intervention in response to irregularities, such as the revocation of an announcement or the replacement of a supervisor.

Time is of the essence in these proceedings – from the date of the announcement, there is only a four-month period of protection against enforcement. During this time, our law firm takes over responsibility for conducting the entire procedure in order to obtain approval of the arrangement and avoid bankruptcy. We protect the interests of the entrepreneur by planning the arrangement so that its provisions do not result in allegations of prejudice to creditors. If necessary, we also negotiate the terms of the arrangement with the largest creditors before the vote.

Thanks to our knowledge of the practice of restructuring courts and the realities of conducting arrangement proceedings, the debtor can focus on running their business rather than analyzing deadlines and documents. We take care of every stage – from setting the arrangement date to preparing materials for the creditors’ meeting and final approval of the arrangement by the court. For many companies, this is the only way to regain liquidity and save the company from bankruptcy.

The Restructuring Law imposes specific obligations on both debtors and supervisors. From the moment of publication in the National Debt Register, the debtor enjoys protection but must act within the limits of ordinary management. Failure to do so may result not only in the discontinuation of proceedings but also in civil liability. The creditor, in turn, should immediately familiarize themselves with the content of the announcement and the settlement proposals, as the legal effects – including the suspension of enforcement proceedings – arise by operation of law.

Simplified restructuring is a procedure in which precision, timeliness, and practical knowledge are of paramount importance. For this reason, cooperation with an experienced law firm and restructuring advisor is not only recommended but often essential. KWKR Law Firm, with its practice also covering reorganization and other forms of restructuring proceedings, guarantees effectiveness, security, and professional support in difficult moments of business activity.