{"id":3182,"date":"2024-09-05T13:19:26","date_gmt":"2024-09-05T11:19:26","guid":{"rendered":"https:\/\/pmrsa.pl\/?p=3182"},"modified":"2025-05-31T06:02:39","modified_gmt":"2025-05-31T06:02:39","slug":"variation-proceedings-part-3","status":"publish","type":"post","link":"https:\/\/pmrsa.pl\/en\/variation-proceedings-part-3\/","title":{"rendered":"Proceedings for the modification of the arrangement Part 3"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><strong>View from the creditor's perspective<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>We present to you the next part of the reflections on the redesign of the<\/strong>This time, the creditors are the most important participants in the proceedings, as the fate of the amended agreement, and often also of the debtor's further existence, rests in their hands.<\/p>\n\n\n\n<h4 class=\"wp-block-heading has-text-align-center\">A few words about the article - Listen<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/pmrsa.pl\/wp-content\/uploads\/2024\/09\/Postepowanie-o-zmiane-ukladu-czesc-3.mp3\"><\/audio><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Statistically, the largest number of proceedings for modification of an arrangement are initiated as a result of a reduction in income from the debtor's business in order to obtain the approval of the creditors for such a modification of the method of repayment that will ensure its continued enforceability and at the same time be acceptable to the creditors<\/strong>. In progress <a href=\"https:\/\/pmrsa.pl\/en\/variation-proceedings-part-2\/\" data-wpil-monitor-id=\"60\">proceedings to modify the arrangement<\/a> the previously approved arrangement is still in force and, in principle, should be implemented by the debtor. The phrase &quot;in principle&quot; is not used by accident, because while there are no regulations that would directly allow the debtor to refrain from paying the arrangement installments, in <a href=\"https:\/\/pmrsa.pl\/en\/creditors-and-practitioners-from-the-cosmetics-industry-want-to-save-kerdos-and-dayli\/\" data-wpil-monitor-id=\"1570\">In practice, this happens very often and means that creditors<\/a> reduction or at least periodic suspension of repayment at least during the proceedings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>It is necessary to begin by explaining the consequences of the delay in implementing the approved agreement, which <a href=\"https:\/\/pmrsa.pl\/en\/new-chance-policy-entrepreneurs-in-a-difficult-situation-can-count-on-support\/\">can crystallize even in a situation<\/a>, when the entrepreneur has only one arrears in the payment of due arrangement instalments. <\/strong>In such a case, among other things, the creditor and the supervisor of the implementation of the arrangement have the possibility of filing an application for the revocation of the arrangement, the successful recognition of which results in the loss of all the benefits deriving from it, including the redemption earned, and the entirety of the liabilities becoming immediately due and payable, including interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The creditor is therefore in a coercive situation, <\/strong>which requires an individual assessment of the balance of benefits and costs and the decisions of which he will also be the ultimate beneficiary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>On the one hand, he may disagree with the decision of the debtor (creditor or supervisor of the implementation of the arrangement <\/strong>- (as all these entities are entitled to submit an application for a variation of the arrangement) to conduct the variation procedure. The first moment of expressing such disapproval is the issuance of the decision to open the arrangement, or more precisely the announcement of this fact, as from the date of the announcement the creditor has seven days to lodge a complaint against the said decision.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, it may turn out that the proposed directions <a href=\"https:\/\/pmrsa.pl\/en\/mediatel-appeals-against-the-resolution-of-the-creditors-council-regarding-the-change-of-the-administrator-of-hawe-telekom\/\" data-wpil-monitor-id=\"1438\">changes in the final settlement will be for the creditor<\/a> more favourable than alternative scenarios, e.g. bankruptcy proceedings or forced execution. <br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The procedure for amending the arrangement covers all creditors who had the right to vote at the creditors' meeting at which the arrangement was adopted and whose claims were in dispute at the time of the vote on the original arrangement<\/strong>, and after the acceptance of the arrangement were confirmed by a final court ruling or a final administrative decision. However, creditors whose claims have been fully satisfied do not have the right to participate. Therefore, if the creditor was entitled to vote on the original arrangement (even if they did not exercise this right) and their claim has not been fully repaid, they are covered by the proceedings by operation of law, which means that any decision on the acceptance of the arrangement taken with the participation of the majority of creditors required by law (50%+1) holding more than 2\/3 of the claims of the voting creditors, <a href=\"https:\/\/pmrsa.pl\/en\/pharmacy-for-the-pharmacist-i-e-there-will-be-fewer-and-fewer-pharmacies\/\">It will also be for<\/a> binding on him<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You often ask whether you have to declare your participation in the proceedings in some way - we answer - 'no'. In these proceedings, creditors do not declare their claims and their eligibility to participate in the proceedings is determined by the court supervisor by including them in the list of creditors entitled to vote on the arrangement.<\/strong>  According to the Restructuring Law, such a list should be prepared within two weeks from the date of opening the proceedings to change the arrangement and placed in the files of the proceedings. Verification of whether and in what amount the receivable has been included in the proceedings can be made by contacting the court supervisor directly or by verifying the list of creditors in the files of the proceedings kept in the National Register of Debtors, and for this purpose it is necessary to <a href=\"https:\/\/pmrsa.pl\/en\/whether-an-employee-can-file-for-bankruptcy-of-the-employer\/\" data-wpil-monitor-id=\"1177\">submit an application in advance<\/a> for granting access to the case files. If any discrepancies are discovered, it is worth reporting them to the court supervisor, you can also submit such information to the case files via the aforementioned <a href=\"https:\/\/pmrsa.pl\/en\/the-national-debt-register-does-not-work-efficiently\/\" data-wpil-monitor-id=\"562\">National Register of Indebted Persons<\/a>. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The most important moment for the debtor, but also from the creditors' perspective, is the date of the creditors' meeting to vote on the modification of the arrangement, of which they should be notified, at least three weeks before the appointed date.<\/strong> Together with the notice, the arrangement proposals, ballot papers, instructions on how to vote and possibly other documents (e.g. the Restructuring Plan) that should enable a decision to be taken are provided. At this stage, a doubt may arise as to the amount disclosed on the ballot that entitles one to vote on the arrangement, as this is not the amount outstanding under the current arrangement. Voting power in these proceedings is determined as the difference between the amount the creditor voted on the original arrangement and the amount of repayments made. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>At this point, a few words about <a href=\"https:\/\/pmrsa.pl\/en\/step-7-creation-of-a-layout-proposal\/\" data-wpil-monitor-id=\"23\">arrangement proposals<\/a> \u2013 taking into account the reasons most often underlying the change in the arrangement, i.e. a reduction in income, one can most often expect additional write-off, postponement or extension of the repayment period. <\/strong>There are of course proposals that assume certain compensations, e.g. in the form of additional interest or an increase in the total value of the repayment to compensate for the lost benefits during the deferral period, but the opening of the proceedings <a href=\"https:\/\/pmrsa.pl\/en\/amendment-to-the-restructuring-agreement\/\" data-wpil-monitor-id=\"1203\">change of arrangement<\/a> is always associated with some, to put it mildly, &quot;inconveniences&quot;. Making a decision in a forced situation, often under the influence of strong emotions, requiring time commitment, analysis of extensive documentation, sometimes in the face of the lack of a full picture of the course of the procedure is extremely difficult for creditors. It can lead to a decision that will ultimately <a href=\"https:\/\/pmrsa.pl\/en\/pharmacy-for-the-pharmacist-i-e-there-will-be-fewer-and-fewer-pharmacies\/\">will have negative consequences for<\/a> the creditor himself.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, it is worth remembering that the creditor can also benefit from support <a href=\"https:\/\/pmrsa.pl\/en\/the-restructuring-advisor-provides-support-and-obtains-the-necessary-funds\/\" data-wpil-monitor-id=\"2115\">restructuring adviser<\/a>, which, as an entity with full knowledge of restructuring and bankruptcy proceedings, will be able to fully analyse the debtor\u2019s situation, assess the feasibility of the submitted arrangement proposals, consider appropriate steps in the course of the proceedings and recommend a decision that will be best from the point of view of protecting and securing the creditor\u2019s interests. <\/p>","protected":false},"excerpt":{"rendered":"<p>A Creditor&#039;s Perspective: We present another section of our discussion on amending the arrangement, this time with a nod to the creditors, who are the most important participants in the proceedings, as the fate of the arrangement amendment proceeding, and often the debtor&#039;s continued existence, rests in their hands. A few words about the article - Listen. Statistically, most arrangement amendment proceedings are initiated as a result of a reduction in the debtor&#039;s business income, with the goal of obtaining creditors&#039; approval for a modification of the repayment method that will ensure its continued viability and, at the same time, be acceptable to the creditors. During the arrangement amendment proceedings, the previously approved arrangement remains in effect and, in principle, should be implemented by the debtor. The phrase &quot;in principle&quot; appears deliberately, because while there are no regulations explicitly allowing the debtor to withhold payment of arrangement installments, in practice this happens very often and means that creditors will experience a reduction or at least a temporary suspension of repayment, at least during the proceedings. It&#039;s important to begin by explaining the consequences of delays in implementing an approved arrangement, which can crystallize even if the entrepreneur is only in arrears with payment of due arrangement installments. In such a case, the creditor and the arrangement supervisor, among others, have the option of filing a motion to set aside the arrangement. A positive determination of this motion results in the loss of all benefits resulting from it, including the earned write-off, and all liabilities become immediately due, along with interest. The creditor is therefore in a forced situation that requires an individual assessment of the balance of benefits and costs and decision-making, of which they will also be the ultimate beneficiary. On the one hand, they may disagree with the debtor&#039;s decision (either the creditor or the arrangement supervisor \u2013 as all of these entities have the right to file a motion to amend the arrangement) to conduct the arrangement amendment proceedings. The first moment to express such disapproval is the issuance of a decision to open the arrangement, or more precisely, a notice of this fact, as the creditor has seven days from the date of the notice to file an appeal against the said decision. On the other hand, it may turn out that the proposed changes in the final settlement will be more favorable to the creditor than alternative scenarios, such as bankruptcy proceedings or forced execution. The arrangement amendment procedure covers all creditors who had the right to vote at the creditors&#039; meeting at which the arrangement was adopted, as well as those whose claims were disputed at the time of the vote on the original arrangement and, after the arrangement was adopted, were confirmed by a final court ruling or a final administrative decision. However, creditors whose claims were fully satisfied do not have the right to participate. Therefore, if a creditor was entitled to vote on the original arrangement (even if they did not exercise this right) and their claim has not been fully repaid, they are subject to the proceedings by operation of law, which means that any decision to accept the arrangement, made with the participation of the statutory majority of creditors (50%+1) holding more than two-thirds of the voting creditors&#039; claims, will also be binding on them. We are often asked whether you are required to register your participation in the proceedings in any way \u2013 our answer is &quot;no.&quot; In these proceedings, creditors do not register their claims, and their eligibility to participate is determined by the court supervisor by including them on a list of creditors entitled to vote on the arrangement. Pursuant to the Restructuring Law, such a list should be prepared within two weeks of the opening of the arrangement amendment proceedings and included in the proceedings files. Verification of whether and for what amount a debt has been included in the proceedings can be made by contacting the court supervisor directly or by verifying the list of creditors in the proceedings files maintained by the National Debt Register. To do this, a request for access to the proceedings files must be submitted. If any discrepancies are discovered, it is advisable to report them to the court supervisor; such information can also be submitted to the proceedings files through the aforementioned National Debt Register. The most important moment for the debtor, and also for the creditors, is the date of the creditors&#039; meeting to vote on the arrangement amendment. They should be notified of this at least three weeks before the scheduled date. The notification includes arrangement proposals, voting cards, instructions, voting instructions, and possibly other documents (e.g., the restructuring plan) that should facilitate decision-making. At this stage, doubts may arise regarding the amount disclosed on the card, which entitles the holder to vote on the arrangement, as it does not represent the amount remaining to be repaid under the current arrangement. Voting power in this proceeding is determined by the difference between the creditor&#039;s vote on the original arrangement and the amount of repayments made. A few words about arrangement proposals are needed here. Considering the most common reasons for amending the arrangement, such as a decrease in income, additional debt relief, deferral, or extension of the repayment period can be expected. Of course, there are proposals that provide for compensation, for example, in the form of additional interest or an increase in the total repayment value to compensate for lost profits during the deferral period. However, initiating proceedings to amend the arrangement always involves certain, to put it mildly, &quot;inconveniences.&quot; Making a decision in a situation of emergency, often under the influence of strong emotions, requiring a time commitment, analysis of extensive documentation, and sometimes in the absence of a complete picture of the procedure, is extremely difficult for creditors. It can lead to a decision that ultimately has negative consequences for the creditor. Therefore, it is worth remembering that a creditor can also benefit from the support of a restructuring advisor who, as an entity with full knowledge of restructuring and bankruptcy proceedings, will be able to fully analyze the debtor&#039;s situation, assess the feasibility of the submitted arrangement proposals, consider appropriate steps in the course of the proceedings and recommend a decision that will be best from the point of view of protecting and securing the creditor&#039;s interests.<\/p>","protected":false},"author":14,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[19],"tags":[],"ppma_author":[33],"class_list":["post-3182","post","type-post","status-publish","format-standard","hentry","category-blog"],"authors":[{"term_id":33,"user_id":14,"is_guest":0,"slug":"m-zarownapmr-restructuring-pl","display_name":"Marta Zar\u00f3wna","avatar_url":{"url":"https:\/\/pmrsa.pl\/wp-content\/uploads\/2024\/09\/user03-1.jpg","url2x":"https:\/\/pmrsa.pl\/wp-content\/uploads\/2024\/09\/user03-1.jpg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/posts\/3182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/comments?post=3182"}],"version-history":[{"count":0,"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/posts\/3182\/revisions"}],"wp:attachment":[{"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/media?parent=3182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/categories?post=3182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/tags?post=3182"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/pmrsa.pl\/en\/wp-json\/wp\/v2\/ppma_author?post=3182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}