Judicial restructuring

Holistic restructuring solutions

For entrepreneurs having been declared insolvent, or for those at risk of insolvency.

When can judicial restructuring be used?

When entrepreneurs have become insolvent (meaning, inter alia, the loss of ability to discharge financial liabilities in a timely manner) or are facing insolvency (i.e. facing insolvency in the near future, taking into account their current economic situation).

And particularly when protection against enforcement or elimination of unfavourable agreements is necessary for the success of the restructuring process, considering the above state and cash flow.


The purpose of judicial restructuring is to prevent entrepreneurs from being declared bankrupt by enabling them to reach agreement with creditors, either by entering into an arrangement or – in the case of remedial proceedings – taking additional, specific remedial measures.

Types of restructuring proceedings

Restructuring Law provides for four basic types of restructuring proceedings, and a fifth, episodic type. These differ, inter alia, in the course and dynamics, degree of interference in management by entrepreneurs, and degree of protection against enforcement. Each option has its pros and cons, with the choice being made based on the individual facts of the case at hand.

For whom are these individual restructuring models best suited?

Arrangement approval proceedings

Debtors requiring the least formality, with the primary goal of continuing as a going concern without lengthy court proceedings and external interference in management. However, this grants actually no statutory protection against enforcement.

Fast-track arrangement proceedings

Debtors requiring protection against enforcement, allowing them to continue as a going concern. Due to procedural simplifications, this model facilitates relatively quick arrangements with creditors, but can only be applied when the level of disputed claim is low.

Arrangement proceedings

Debtors not meeting the statutory requirements for fast-track arrangement proceedings.

Remedial proceedings

Debtors whose situation is so difficult that only the complete suspension of enforcement and remedial measures (including special powers of an administrator such as elimination of unfavourable agreements) will allow them to continue as a going concern in the long run. In general, company management is transferred away from the debtor.

COVID restructuring

The Shield 4.0 regulations provide for simplified restructuring proceedings for entities affected by the SARS-CoV-2 epidemic.

The COVID restructuring is episodic (and may be initiated only once by the end of June 2021), being nothing more than arrangement approval proceedings with increased comprehensive debtor protection mechanisms.

Owing to the minimal formality and a high level of protection against enforcement by creditors, this is currently the most frequently chosen model.

Standard bankruptcy

No possibility for making use of restructuring or the Pre-Pack.


How can we assist?

Kochański & Partners assistance covers in particular:

  • Providing support in solvency testing and examining key issues;
  • Performing a restructuring audit;
  • Selecting the most client beneficial type of proceedings;
  • Recommending a verified and competent restructuring advisor;
  • Assisting in the development of a restructuring plan/arrangement proposals, a restructuring or bankruptcy petition;
  • Drafting other documentation;
  • Securing the position of management staff;
  • Representing clients before competent authorities, including legal representation.

Our lawyers have extensive experience in judicial restructuring and bankruptcy proceedings, representing all kinds of stakeholders: debtors, debtors’ administrators, debtors’ owners, creditors, as well as third parties interested in purchasing debtors’ assets.

This unique level of experience allows us to provide legal support at the highest level. We do not limit ourselves strictly to court proceedings, but rather take into account entrepreneurs’ broader business goals.

Contact us:

Mateusz Ostrowski

Mateusz Ostrowski

Advocate, Partner, Head of Litigation Practice

+48 606 385 813