As provided for in the so-called ‘shields’ 4.0” a simplified restructuring procedure may be an effective tool to achieve a rapid effect on the cessation of a winding debt spiral and the necessary time to take restructuring action.
The simplified restructuring procedure is to be based on the applicable procedure for the approval of the system, but with the introduction of substantial modifications the new procedure is likely to gain much more popularity than the occasional application of the approval procedure.
Key elements of the proposed solution:
- • initiating restructuring proceedings on the basis of a unilateral declaration by the debtor, the date of initiation will be the date of the notice in the Court and Economic Monitor;
- • as from the date of the notice, the enforcement proceedings relating to claims covered by the arrangement shall be suspended, the suspension of enforcement shall also cover claims secured by the forfeiture;
- • the responsibility of the members of the Management Board shall be excluded on similar terms as in the case of a request for bankruptcy or a request for restructuring proceedings;
- the collection of votes relating to arrangement proposals from creditors will take place as in the case of the agreement approval procedure, but the arrangement supervisor will be able to convene a meeting of creditors that can be held using electronic means of communication (e.g. Skype, Zoom, etc.);
- Within 4 months from the opening of proceedings, the debtor should apply to the court for approval of the arrangement, otherwise the procedure will be terminated by law.
In addition to these changes to the restructuring possibilities of “Tarcza” 4.0” includes, inter alia, solutions such as:
- • protection of borrowers of ‘credit holidays’;
- • changes in labour law on working time, holidays, remote work, no competition;
- • the possibility to support local governments;
- • interest subsidies on bank loans for firms in difficulty;
- • reduction of charges for perpetual use.
On 4 June.this year Parliament adopted the bill by a majority 228 Voices. Against 189 Members 38 abstained. Now the document goes to the Senate.
Author:
Leszek Dutkiewicz, partner Russell Bedford Poland. Associated with the company from 2011. Director of RBP office in Katowice. In years 2008 – 2011 worked for leading consulting companies (Ernst&Young, KPMG, BDO) providing tax advisory services.
He specializes in tax and economic law, primarily in international tax law, tax proceedings, VAT and transaction prices. Author of a publication on tax, civil and international law issues. Lecturer in tax law training. He has legal education, in 2008 graduated from the Faculty of Law and Administration of the Jagiellonian University.