To set the scene, what is the current state of play in the restructuring market in your specific country?
In 2021, the number of restructuring proceedings in Poland increased by more than 230 percent compared to 2020. The data for the first quarter of 2022 shows that although the special provisions related to the Covid-19-19 pandemic in force in the previous year have ceased to apply, interest in these proceedings has only minimally decreased. In the first quarter of 2022, there were 369 opened restructuring proceedings, which is 15 percent less than in Q1 2021.
How has the Covid-19 pandemic impacted restructuring activity in your country, and why is this the case?
The crisis caused by Covid-19-19 has popularised restructuring proceedings in Poland, as indicated by a 236 percent increase in proceedings in 2021 (JanuaryDecember) compared to the same period in 2020. Such a large number of restructuring proceedings may be due to the laws introduced to counteract the economic crisis caused by Covid-19 called simplified restructuring (which ended on the 1st of December 2021), but it is also due to the statutory limitation of the consideration of bankruptcy applications until the end of the epidemiological emergency and also restriction of bankruptcy removed the obligation of boards of directors to file a bankruptcy petition under pain of liability to creditors within 30 days from the date of insolvency. It is also worth emphasizing that we need to know more about the number of bankruptcies that cannot be filed by management in the current legal form to determine what the actual growth of restructuring proceedings is.
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