On 9 April the Polish Parliament adopted a bill implementing the so-called “second chance” policy for businesses, pursued at the EU level.
The Act introduces a clear separation between restructuring proceedings and bankruptcy proceedings. As the latter are commonly perceived as stigmatising, the initiation of bankruptcy can hinder successful restructuring. The new Act introduces four new types of restructuring proceedings, i.e.:
- proceedings regarding approval of the arrangement,
- fast-track restructuring proceedings,
- (ordinary) restructuring proceedings,
- sanation proceedings.
The Act provides that any of the above proceedings is available to both insolvent undertakings and those only threatened by insolvency.
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