Bankruptcy law changes in 2016

Bankruptcy law is going to change on Jan 1st 2016 in Poland. Entrepreneur whose company is looking at the insolvency will not need to wait until all the assets are sold out by the receiver. Apart from introduction of many changes in the current procedures the new law also consists of many new legal solutions that aim at successful company restructuring.

One of the main newly introduced procedures is a so called pre-packaged insolvency which is currently being implemented into legal systems of many countries (this solution is already being used in the US). This procedure allows fast sale of the enterprise instead of standard liquidation. The sale does not require approval of the court of creditors which allows the company to deal with bankruptcy much more faster then before.

Such fast reaction to the financial problems of companies is considered to be beneficial for both the company and its creditors as long lasting bankruptcy only cause the loss of the value of the enterprise and its assets. It also allows a potential investor to favorably acquire debt free enterprise or its part. Fast sale of a running business should ensure its continuity and as a result attract higher bids from the interested investors as they will not need to take into consideration loss of value and credibility of the acquired business.