Poland: Anti-crisis shield 2.0
Insolvency and restructuring proceedings (update on the legal status)
FILING FOR BANKRUPTCY DURING THE COVID-19 PANDEMIC
The new amendment to the Act on special arrangements for preventing Covid-19, other infectious diseases and crisis situations caused by them, which constitutes the “Anti-crisis shield 2.0”, also provides for changes in Polish bankruptcy law.
During an imminent or actual epidemic, the period within which a bankruptcy petition has to be filed does not start, but it is interrupted and starts to run anew after the state of epidemic ends.
If the basis for bankruptcy arises during an imminent or actual epidemic and the bankruptcy is presumed to be due to Covid-19, a bankruptcy petition has to be filed within 30 days after the state of epidemic is lifted.
The periods relating to the ineffectiveness (claw-back) of the bankrupt’s actions (under the current legal status one year prior to filing of the petition) are extended by the time by which, due to emergency (epidemic) status, the periods for filing petitions are extended.
In our opinion, further changes to the scope of bankruptcy and restructuring proceedings should also provide for formal simplifications for debtors (e.g. with regard to documents to be attached to a bankruptcy petition) and changes to the scope of presumptions (e.g. extension of the period of delay in payment of liabilities when assessing insolvency), bankruptcy and restructuring cases should also be clearly considered urgent cases, which continue to be handled by the courts de-spite the state of epidemic.
The above information is an update to our previous article: Insolvency and restructuring proceedings - legal status, in which you can find more detailed information on general and current regulations regarding insolvency and restructuring proceedings.
Any questions? Please contact: Wojciech Wasowicz or Justyna Solarska
Practice group: Restructuring & Insolvency