Remedial proceedings in Poland



Remedial proceedings

The remedial proceedings is the type of restructuring proceedings, which are regulated in Act of 15 May 2015 – Restructuring Law. This type of procedure allows protecting interests of both creditors and debtor. The creditors are able to collect their receivables, while the debtor is allowed to conduct its business activity. This type of procedure is applicable when there are chances to avoid bankruptcy and then liquidation proceedings with regard to debtor. However, the provisions of abovementioned Act strictly regulate the procedure.


Remedial actions shall include legal and factual actions, which aim to improve the economic situation of debtor and restore its capacity to perform obligations and simultaneously protect it against enforcement proceedings.

Motion for opening remedial proceedings

Motion should be filled directly to Commercial Division of appropriate court. After examining the motion, court issues decision on opening remedial proceedings in which debtor is deprived of self-administration of its estate. Simultaneously, the court appoints the administrator. However, if the debtor or its representatives provide guarantee of proper performance the administration over the estate, the court may allow them to manage over the part or even whole administration, which does not exceed the daily management activities.

Preparation and performance of restructuration plan

The administrator is obliged to provide the judge-commissioner with creditors list within 30 days since the opening of remedial proceedings. In the same term the administrator have to present the restructuration plan. Such plan should be drafted in cooperation with debtor. In some justified cases, the 30-days term can be lengthened up to three months by judge-commissioner. If the administrator and debtor cannot reach an agreement with regard to restructuration plan, the administrator shall submit the plan with attached debtor’s reservations. Then, judge-commissioner examines the plan and after assessment of Creditors Committee issues decision on approval the restructuration plan. However, the judge-commissioner can also issue an injunction against some specified actions indicated in plan and order the implementation of other steps dictated by the purposes of remedial proceedings and interests of creditors and third parties which are not included in remedial proceedings.

Main consequences of opening remedial proceedings

Apart of the above, the main feature of opening remedial proceedings as such, is that debtor is deprived of the management on its entire property. Debtor is obliged to provide to judge-commissioner and appointed administrator all the explanations concerning its previous business activities. Moreover, opening remedial proceedings invalidates all authorizations previously granted by debtor to its commercial proxies. The appointed administrator (upon the consent of judge-commissioner) is entitled to cancel all the agreements, which have not been performed as a whole or partially before opening remedial proceedings.
Nevertheless, it should be noted that despite of opening the remedial proceedings, the creditor is allowed to pursue the claims in separate procedures e.g. arbitration).

If you are informed that your Polish debtor was covered by remedial proceedings, please contact our lawyers to check if that is the case we will file the claim on the creditors list and then secure your receivables in remedial proceedings.