The simplified proceedings for the approval of an arrangement (postępowanie o zatwierdzenie układu) is the newest restructuring procedure available under Polish law.
It was introduced to the Polish legal system by the so-called Shield 4.0 enactment (ie Act of 19 June 2020, Journal of Laws of 2020, item 1086).
Here's a round-up of the key information you need to know about Poland's new simplified restructuring procedure.
How do the simplified proceedings work?
As previously reported, the Corporate Insolvency and Governance Act 2020 (CIGA) had made some permanent and temporary changes to the insolvency regime.
Here we focus on the impact of CIGA on construction contracts and, in particular, how the new provisions impact on construction contracts and the Construction Act.
What is CICA?
Background
In Re North Point Global Ltd, the liquidators of a subsidiary submitted a proof in the CVA of the parent company based upon a claim that certain payments made by the parent to the subsidiary were unlawful preferences. Notably, when the parent's CVA came into effect, the liquidators of the subsidiary had not been appointed.
Under section 64 of the German Companies Act (GmbHG), the managing director of a company is obliged to reimburse payments which have been made after the company becomes illiquid or over-indebted but not when the payments are made with the diligence of a prudent businessman. Such permitted payments include those that are necessary for production, internal operation, and the maintenance of the business concern.
Temporary Payment Deferral Act 2020
This proposal aims to prevent avoidable insolvencies and offer the court the option to:
Facts
Centenary Homes Limited (C) was a property development company which acquired two blocks of flats: one in Enfield and the other in Bloomsbury. The Bank of Scotland (BOS) extended secured finance to C for the development of the two properties.
C defaulted on its repayment obligations in 2012 and fixed charge receivers were appointed in March, when the balance outstanding was approximately £4.4 million.
The receivers were able to sell the Enfield flats in July 2012, for £3,250,000.
Summary
The regulations governing personal insolvency in Austria will change on 1 November 2017. Whilst generally the regulations remain somewhat the same, some key debtor-friendly amendments have been effected.
The changes primarily concern mandatory quotas as well as the duration of the proceedings.
The following is an outline of the ‘new’ Austrian insolvency proceedings for natural persons.
Phase one – payment schedule
Background
Creditors of an insolvent entity file their claims against the entity with the insolvency administrator (Germany) or insolvency court (Austria). If a claim is accepted, it is registered in the insolvency table as an accepted claim and the creditor is listed as an insolvency creditor in the insolvency proceedings.
Summary
A recent ruling from the Austrian Supreme Court concerning the liability of auditors in damages for providing an unqualified opinion on an insolvent debtor.
Legal Background
Pursuant to sec. 275 para 2 of the Austrian Commercial Code auditors are liable for damages caused by negligent (or intentional) violation of their duty to perform audits impartially and diligently. The liability is capped at EUR 2 mill. for audit of smaller companies.
Facts of the Case
As can be read in the media, reorganization proceedings were opened on the assets of the Kärntner Landes- und Hypothekenbank-Holding.
The reason for the application for initiation of reorganization proceedings is the liability by virtue of law of the applicant for all current and future liabilities of the bad bank HETA Asset Resolution AG, universal successor of Hypo Alpe-Adria-Bank International AG.