On May 2, 2009, new provisions amending the Bankruptcy and Reorganization Law came into force. The new provisions attempt to facilitate the declaration of bankruptcy by increasing the number of claims categories (now there are five of them instead of four). The new provisions also reduce the requirements concerning the opening of reorganization proceedings. To date, because of the legal formalism, the provisions on reorganization proceedings were hardly ever used.

From May 2, an entrepreneur whose unfulfilled obligations do not exceed 10 percent of the balance value of the enterprise and whose payment arrears are not longer than three months is allowed to apply to launch reorganization proceedings. A number of other, more minor, regulations within the Bankruptcy and Reorganization Law have also been altered.

Contact person: Mirosław Bik,

mb@pnplaw.pl