Highlights of the new Polish restructuring legal framework
The Polish legislature has enacted new restructuring legislation following extended deliberation. This framework introduces restructuring procedures implementing a “second chance” approach for enterprises facing financial difficulties.
The legislation establishes multiple restructuring pathways, enabling businesses to customize their approach based on specific circumstances and financial conditions.
Creditor Approval Requirements
Arrangements affecting more than 15% of contested claims need creditor majority consent. Approval requires at least two-thirds support from voting creditors’ total claims, potentially excluding creditors with disputed amounts under 15%. When this threshold isn’t met, creditors representing 51% of total voting claims determine the outcome.
Creditor Group Arrangements
Designated creditor groups may enter restructuring agreements affecting their claims independently. The legislation prioritizes collective creditor interests over individual or group preferences. The framework provides mechanisms to balance and coordinate these sometimes competing interests.