Doubts about postponement of bankruptcy petitions
The suspension of the obligation to file a pandemic bankruptcy petition is provided for in Article 15zzra.1. of the Covid Law. Currently, this provision is causing a lot of doubt.
Law firms are being approached by clients who are convinced that COVID-19 always justifies a company’s weak position during a pandemic. According to Piotr Zimmermann, legal adviser, restructuring adviser from the law firm Zimmerman Sierakowski and Partners, the introduction of the moratorium was justified when it seemed that the pandemic would last a year at most. Now it needs to be ended as soon as possible. Such a move would benefit the economy as well as the interests of creditors. In addition, it would reduce the risks for board members. This is because, in order to benefit from the protection afforded by the moratorium, it must be demonstrated that the insolvency is linked to the pandemic. This is increasingly difficult today.
On the other hand, Karol Tatara, a legal adviser and qualified restructuring adviser from Tatara & Co-operators law firm, is of a different opinion. He says that the provision regarding the moratorium is outdated. In March 2022, it is difficult to justify that insolvency is the result of COVID-19.