According to S&P Global fixed income research, EUR 3.7 trillion of rated European company debt is due to mature between mid-2017 and the end of 2022.This gives rise to anticipation that, in the coming years, the European financial markets will be increasingly driven by refinancing, restructuring and investment in distressed assets. Respondents to the survey “Changing tides: European M&A Outlook 2017” prepared by CMS in cooperation with Mergermarket in September 2017 have also remarked on this trend.
November 2017 saw the first successful pre-packaged bankruptcy of a wind farm operator following the introduction of this procedure to Polish bankruptcy law in January 2016. Thanks to a decision made by the bankruptcy court in Warsaw, the assets of the 6 MW wind farm in Korzęcin can now be taken over by a publicly listed company operating in the renewable energy sector.
One of the many questions asked by our clients is: “Does Polish law recognise the concept of ‘piercing the corporate veil?’” Is it possible to disregard the separate legal personality of a company or corporation and make shareholders liable for the debts of the company? This question has been asked since the introduction of the market economy in Poland (in 1989) and there is still no clear answer.
Bankruptcy and restructuring law in Poland is undergoing considerable modernisation, as demonstrated by the following:
The coronavirus pandemic poses new risks and challenges for business at a scale unknown before. In order to assist businesses, the Polish government has announced that a PLN 212 bn ($53bn) stimulus package will be put in place. For a summary see our previous post. Start up of the aid package will take time, and the shape of further aid to come is as yet unknown.
Can distressed assets be disposed of more quickly during the upcoming economic downturn? On 24 March 2020, amendments to the Polish bankruptcy law came into force, including the amendments regarding pre-packaged sales. The pre-pack sale procedure was highly praised by restructuring practitioners a few years ago, but what are experts saying now? Lech Giliciński and Joanna Gąsowski, restructuring lawyers of Wolf Theiss Warsaw, comment on yesterday's amendments to the Polish Bankruptcy Law. In order to learn more, please download the file below.
With respect to the dynamic course of events regarding the coronavirus disease 2019 (COVID-19), commonly known as the "coronavirus", we address the threat of insolvency of Polish companies and related liability of the statutory bodies (management board members), and provide a list of practical mitigating steps.
Insolvency Test of Your Company
Pursuant to the Polish bankruptcy law, the company is insolvent if: a. It is not able to pay its liabilities when they fall due and if the
On April 9, 2020, the Polish Sejm (lower House of Parliament) passed the Act on special support instruments with regard to the spread of SARS-CoV-2 virus and COVID-19 disease caused by it (the so-called Shield 2.0), featuring much anticipated changes to the deadlines for filing for bankruptcy.
The new year will bring tremendous changes to the Polish insolvency regime as significant amendments to the Bankruptcy and Recovery Law (Journal of Laws 2015, No. 233, uniform text) come into force on 1 January 2016 (New Bankruptcy Law). The aim of the New Bankruptcy Law is to make existing legal instruments more effective and to help business entities survive financial stress or distress.
Overview
During the current economic slowdown businesses in many industries, including some in the industrial engineering sector, are struggling to make payments to suppliers; some have even gone into bankruptcy. However, under Polish law it is possible for a creditor to achieve some protection even if specific provisions are absent from the contract.