Adrian Dzwonek, a licensed restructuring advisor of JGA Legal and Tax Advisory, has entered into an agreement with the debtor to supervise the proceedings for the approval of the arrangement (the so-called simplified restructuring proceedings). This is a relatively new institution introduced by the Act of 19 June 2020, on Subsidies for Interest on Bank Loans Granted to Entrepreneurs Affected by the Effects of COVID-19, as well as on Simplified Proceedings for the Approval of Arrangements in Connection with the Occurrence of COVID-19 (known as “Shield 4.0”).
The debtor is a company operating in the financial industry, mainly in the field of factoring. Having analysed the legal and economic situation of the company, it was decided to take advantage of the simplified form of restructuring, which largely takes place without the involvement of the court. It should be emphasised that the simplified restructuring proceedings, from the moment of the announcement in the Court and Economic Gazette, provide the debtor with protection for a period of 4 months. During this time, enforcement/security proceedings are suspended, new proceedings cannot be initiated, and creditors are prohibited from terminating key contracts with the debtor.
At the same time, this is the period in which the debtor, together with the arrangement supervisor, should endeavour to reach an arrangement that is feasible for the debtor and satisfactory for the creditors.
