Overview

Previously, the bankruptcy of a company seated in Poland was exclusively a matter of meeting the relevant criteria and following the procedural rules provided in the domestic insolvency law. Now a company in Poland may also find itself under bankruptcy proceedings it is completely unfamiliar with because they have been initiated outside of Poland, with unknown criteria and based upon a decision of a non-Polish official body. Apart from this, there is still a threat of involvement under domestic bankruptcy proceedings governed by the Polish Act on Bankruptcy and Composition (Prawo upadłosciowe i naprawcze; the Bankruptcy Law). It makes the situation of the managers of Polish companies complicated: they have to bear in mind risks relating to the insolvency of their company under the domestic law and at the same time be prepared for the possibility of losing administration rights as a result of an international bankruptcy.