A “Second Chance Directive” – new restructuring proceedings in Poland?

Legislative work is ongoing on the implementation in Poland of the 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 (Directive on restructuring and insolvency).

After the amendment, the following 3 main types of proceedings will be available: (i) insolvency proceedings for insolvent debtors, leading to liquidation of the company; (ii) remedial restructuring for insolvent debtors, the purpose of which will remain to enable the debtor to carry out remedial measures and conclude an arrangement; (iii) preventive restructuring, the purpose of which will be to restore the company’s condition and avoid bankruptcy.

The draft provides for a vacatio legis of as much as 18 months, so the deadline for transposition will be far off.

Should you have any questions, please contact:

Attorney at law