At a particular time since March last year, restructuring proceedings are one from the most important areas for business development. Unfortunately, in Poland it is strongly limping. Entrepreneurs demand that the implementation of EU law be implemented as a matter of urgency.
Member States are to adopt and publish the laws, regulations and administrative provisions necessary to comply with this Directive by 17 July 2021 Unfortunately Poland requested an extension of this deadline
„In many Member States, more than three years before honest entrepreneurs who are insolvent can get their debts released and start business again. An ineffective framework for debt write-offs and a ban on business makes entrepreneurs forced to move to other jurisdictions in order to benefit from the possibility of starting up again within a reasonable period of time, which entails significant additional costs for both their creditors and the traders themselves. Long periods of prohibition, which often accompany proceedings leading to debt write-offs, create obstacles to the freedom to take up and conduct business as part of self-employment,” we read. Directive 2019/1023 of 20 June 2019 on a framework for preventive restructuring, debt write-offs and business bans and measures to improve the effectiveness of restructuring, insolvency and debt write-off proceedings, and amending Directive 2017/1132 (Directive on restructuring and bankruptcy) . It contains a number of recommendations that could improve ruling on this matter.
Member States are to adopt and publish the laws, regulations and administrative provisions necessary to comply with this Directive by 17 July 2021 Unfortunately, Poland requested an extension of this deadline. The Enterprise Council therefore called on the government to implement the Directive as soon as possible.
„In view of the scale and dynamics of the risks posed by the current pandemic situation, the Enterprise Council calls for legislative work to be given a high priority in this area, while taking utmost account of the comments made by the various sectors of the economy, including, in particular, creditors. Fast harmonisation of Polish bankruptcy and restructuring law with the Restructuring Directive is highly desirable" - we read in the Council's appeal.
At the same time, the Enterprise Council noted with concern that instead of extending the time for the implementation of the Restructuring Directive, it was proposed to extend the existing provisions governing the so-called simplified restructuring procedure.
first experience with simplified restructuring procedures shows that it does not create an effective legal framework for transparent dialogue between the debtor and creditors leading to agreement on contractual proposals.
The main problems diagnosed at this stage, according to entrepreneurs, are: lack of communication between the debtor and the supervisor with creditors and bringing the role and actions of creditors to vote/complain the arrangement.