Bond restructuring: A completely new legal regulation in Poland

Completely new solutions on bond restructuring will come into force in Poland on 1 July 2015. The change is crucial – so far, in principle, bond restructuring has been impossible, with the issuers having to resort to partial solutions or being unable to conduct any restructuring at all. The amendment arises from the new Act on Bonds of 15 January 2015 (the “Amendment”). The new rules introduce a number of solutions designed to allow “real” restructuring of bonds – by amending the terms of issue. It is worth remembering that the new rules of bond restructuring may be applied before bankruptcy is declared or in parallel with bankruptcy proceedings (e.g. in the case of an arrangement with the creditors).