Introduction - The Polish Perspective on Restructuring
Poland has a developed a restructuring framework that includes a range of four differentiated preventive restructuring procedures, which apply to both solvent and insolvent companies. Once a company has entered into insolvency proceedings, described as bankruptcy proceedings in Poland, the option still exists to restructure through a pre-packaged sale of a business (or its organised part or substantial assets) or by way of reaching an arrangement. The last option is rarely followed in practice. As with other European countries, the four restructuring procedures may also be perceived as early warning tools, to notify the public that a given debtor may face bankruptcy if its restructuring fails. The reorganisation proceedings included in Annex A to the EIR Recast (“bankruptcy liquidation proceedings” and “bankruptcy proceedings with the possibility of an arrangement”) may, however, be misleading because since 1 January 2016 these proceedings can no longer be opened. They have been retained in Annex A for a transitional period only. Despite the advanced nature of restructuring frameworks in Poland, this report indicates that further reform is likely in implementing the PRD.