X Jubilee Congress of Bankruptcy and Restructuring Law
For the tenth time, the Allerhand Institute organised the Jubilee Congress on Bankruptcy and Restructuring Law. More than 250 lawyers participated in the Congress.
One of the topics of the conference was to improve the operation of bankruptcy courts burdened with a significant number of consumer proceedings.
The proposal of the Ministry of Justice to resolve the existing bottlenecks in bankruptcy courts is to entrust the entire consumer bankruptcy proceedings to receivers and to replace the judge-commissioner with administrative supervision. The court would declare bankruptcy and establish a distribution plan. At the moment, there is no consent to transfer consumer bankruptcy cases to civil or enforcement departments.
During the conference, a Court Watch Foundation report on the application of the prepared liquidation was published. According to the data presented in the report, the Courts are very cautious in the application of the so-called pre-pack regulations. Moreover, the courts do not have confidence in the valuations made and do not see the value of this procedure for creditors.
Bartosz Pilitowski, President of the Court Watch Foundation, pointed out that the procedure of applying the prepared liquidation has a great potential. However, in order to take advantage of the opportunities offered by this institution, it is necessary to stabilise the case law. Currently, the tools used to extend it are very often abused. Frequent difficulties are reported by creditors who are supposedly more interested, but who do not start buying the company. On the other hand, every month spent on recognition of an application for sale under a pre-pack is important, as it freezes funds for the purchase of a company.
