Restructuring blocked by technical problems

Restructuring blocked by technical problems

The National Debtors Register (KRZ) is malfunctioning. Courts across Poland are complaining about technical problems with it.

The system has been operational since 1 December 2021. Since then, the submission of applications for bankruptcy or the initiation of restructuring takes place only electronically. The KRZ was supposed to facilitate and accelerate these procedures. However, it turns out that during the two months of its operation, not a single entrepreneur has been declared bankrupt or any restructuring proceedings have been opened.

This is not because companies are doing well. It is due to the fact that the courts are having trouble dealing with the NCR. They complain above all about the problem of registering specific proceedings. They cannot be assigned to selected judges for examination, given a reference number and entered in the repertory. Filling in applications is labour-intensive and takes more time than before. As a result, the registration of cases is very slow. Courts in large cities in particular, where there are the largest number of cases, are not able to cope well with this.

However, efficient handling of applications for bankruptcy or opening of restructuring is very important. For example, thanks to the NCR, all creditors learn that an application for restructuring proceedings has been filed. As a result, counterparties start coming forward to collect money and vindicate the debtor. He still does not have the protection he would get under restructuring and may go bankrupt

The Ministry of Justice assures that it is currently analysing all remarks and postulates concerning the NCR, which it receives. It predicts that improvements to the system will be introduced at the turn of March and April this year.

Source: https://www.gazetaprawna.pl/firma-i-prawo/artykuly/8356913,upadlosc-restrukturyzacja-krajowy-rejestr-zadluzonych-restrukturyzacja.html

 

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