insolvency and restructuring
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.
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.
Systemic amendments to Poland’s Bankruptcy & Recovery Law enter into force on 1 January 2016.
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.
A forensic audit at the start of the restructuring process should enable the company to uncover irregularities and take the right remedial measures.
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.