Registered Pledge on an Enterprise in Polish Law - Part II

We would like to recommend another issue of a specialist magazine entitled:  “Wirtschaft und Recht in Osteuropa” (in English: Economy and Law in Eastern Europe) in which the second part of the article called: “Registered Pledge on an Enterprise in Polish Law” (“Das Registerpfandrecht an Unternehmen im polnischen Recht”) was published. The article has been cowritten by advocate Katarzyna Domańska-Mołdawa, PhD, Partner of BSJP Law Firm.

This article addresses the topic of registered pledges in bankruptcy and restructuring proceedings, and the following issues in particular:

  • Reasons to dismiss a petition for bankruptcy by the court;
  • Does the creditor, the claim of which is secured with a registered pledge on assets of the bankrupt debtor, has to report its claims in order to participate in the bankruptcy proceedings?
  • Does encumbrance with the registered pledge of the bankrupt's assets may limit a possibility of the so called pre-pack sale?
  • Unacceptability of encumbering the assets comprising the bankruptcy estate with a registered pledge after a declaration of bankruptcy in order to secure a claim which arouse before the declaration of bankruptcy;
  • Ineffectiveness of the registered pledge;
  • When is a bankrupt debtor not a personal debtor?
  • Making an arrangement; arrangement proposals;
  • Satisfaction of the pledgee; a subject of the pledge in the possession of the receiver, the pledgee or a third party; 
With reference to the restructuring proceedings, the following issues are discussed, including:
  • Arrangement and a claim secured on the debtor's property by, among others, a registered pledge;
  • Irrevocable and unconditional consent of the creditor to include the above claims in the arrangement;
  • Partial agreement;
  • Unacceptability of encumbering the debtor's assets with a registered pledge after the opening of restructuring proceedings (prohibition to encumber);
  • Exceptions to the prohibition to encumber;
  • Enforcement from the restricting proceedings (arrangement proceedings, remedial proceedings)
  • Satisfaction of the registered pledgee outside the enforcement proceedings (two situations);
  • Restructuring of the debtor's assets in the remedial proceedings.

The article in question is summed up with a discussion regarding practical problems and proposals for their solution.

The article in German is available HERE. We would like to encourage you to read it!  If you wish to read the first part, please click HERE.