EU Restructuring Directive in Poland What should be changed / amended and in what scope?

1. The so-called EU Restructuring Directive, known also as Second Chance Directive is still within implementation procedure in Poland – currently within government level and stage.

2. The latest version provides for several changes, however many law provisions are already complaint with the Second Chance Directive.

3. We believe that areas already covered include:

1. 1. 1. Preventive restructuring framework, which can be described as the arrangement approval proceedings, currently the most popular restructuring proceedings in Poland;
      2. Automatic stay (safe for duration which differs in the Directive);
      3. Idea of a fresh start and second chance;
      4. Not formal – yet used in practice – obligation for insolvency practitioners for constant professional development;
      5. Thus some may believe that the idea of Second Chance Directive is present within Polish legal framework since 2016, when the Restructuring Law entered into force in Poland, significantly amending Insolvency related law, as well as further amendments to the Bankruptcy Law covering especially fresh start idea and its implementation within the law.

4. We hope that Polish Parliament will soon implement (transpose) the EU Restructuring Directive into Polish legal landscape – beyond outlined already existing legislation.

Authors: Paweł Kuglarz; Mateusz Kaliński