The ‘second chance’ directive will come into force sooner
The implementation of the EU’s Second Chance Directive is expected to become effective sooner than planned.
The “Second Chance” Directive is the Directive of the European Parliament and of the Council (EU) of June 20, 2019, which legally regulates the issue of preventive restructuring, debt discharge and disqualifications, as well as measures to increase the effectiveness of restructuring, insolvency and discharge proceedings.
European Union (EU) Member States have been obliged to implement the Directive by July 2021. Poland took advantage of the possibility to postpone this deadline by one year. Thus, the implementation of the provisions of the Directive was to take place by July 17, 2022. However, it was not until early July 2022 that the proposed text of the Implementation Act appeared. The provisions contained therein were to apply after the 18-month vacatio legis. Everything indicates, however, that this time will be shortened. Some experts consider this to be right and point out that Poland has already significantly exceeded the allowable deadlines for the implementation of EU regulations. In addition, some provisions of the Directive are already present in the Polish legal order. Others argue that the entry into force of the provisions of the Directive and their application requires time necessary to become familiar with them.
The most important provisions of the Directive include:
- introduction of an institution known as the “satisfaction test“,
- authorization of the supervisor and the administrator to support the parties to the restructuring proceedings in the negotiations,
- covering receivables secured by material security with the arrangement,
- acceptance of the arrangement without the objection expressed by the creditors.
