What is the restructuring of liabilities for the debtor?
What is the restructuring of the debtor's liabilities?
We deal with the restructuring of liabilities in the event of deciding to enter into bankruptcy proceedings with the possibility of concluding an arrangement. As part of this bankruptcy procedure, it is necessary to present ways of restructuring the bankrupt's liabilities.
Classic proposals for restructuring of liabilities
The Bankruptcy and Reorganization Law regulates in Art. 270 catalog of basic proposals for restructuring the debtor's liabilities, and these are:
1) postponing the performance of obligations;
2) spreading the debt repayment into installments;
3) reduction of the sum of debts;
4) conversion of receivables into shares or stocks;
5) change, replacement or revocation of the right securing a specific claim.
Other arrangement proposals
Other arrangement proposals can also be found in the provisions of the Bankruptcy and Reorganization Law, and thus:
art. 90 of the Act - the arrangement may be extended for the duration of its performance, the term of the prohibition of termination contained in the lease or tenancy agreement of the premises or real estate in which the bankrupt's business is conducted. The prohibition of termination is a very important issue in the case where the arrangement is to be made on the profit that has been achieved by the bankrupt's enterprise, as it enables the removal of an emerging obstacle to the performance of the arrangement, which could be caused by the forced leave of the occupied property by the bankrupt;
art. 275 - taking over the assets of the bankrupt by creditors and payment of receivables from the profits of the bankrupt enterprise;
art. 294 paragraph. 2 - the possibility of introducing compulsory management over the bankrupt enterprise in the arrangement for the duration of the arrangement;
art. 284 - establishment of security for the performance of the arrangement by third parties;
granting a power of attorney by the bankrupt for the period covering the performance of the arrangement. Such a power of attorney applies to all or part of the business of the debtor in bankruptcy;
- granting a power of attorney to dispose of the bankrupt's property in the event of failure to perform the arrangement.