The agreement concluded in the framework of the restructuring procedure may be repealed only in clearly defined cases, after an application has been submitted by the rightholder. If the agreement is repealed, the debtor and the creditors must face considerable changes.
The court's approval of the arrangement ends the restructuring procedure and at the same time begins the procedure for the implementation of the agreement, which is to say in any simplification a compromise between the debtor and his creditors. erstwhile negotiating the arrangement, it is always essential to measurement the forces on intentions so that the solutions contained therein are feasible. However, as shortly as the agreement is approved, difficulties may arise that may sometimes lead to the withdrawal of the agreement. erstwhile and under what conditions is this possible?
Reasons for repealing the system
Provisions Restructuring rights supply for 2 conditions for the withdrawal of the system. Article 176(1) of that Directive defines them Actaccording to which the court revokes the arrangement:
- if the debtor fails to comply with the arrangement,
- It is clear that the layout will not be executed.
The legislator presumes to be ‘obvious’ that the arrangement will not be executed if the debtor fails to fulfil the obligations arising after approval of the arrangement. However, this is the alleged ‘balancing presumption’, which means that, in the circumstances of a peculiar case, the debtor can show before the court that despite the failure to meet the obligations indicated here, the arrangement will be executed.
It is worth noting that the fulfilment of at least 1 of the stated conditions means that the court is obliged to revoke the arrangement. The wording of Article 176(1) clearly indicates this Restructuring rightsin which the legislator stated that ‘court repeals’, and not "may repeal" the arrangement. It is, therefore, no uncertainty an work for the court examining the request to repeal the Agreement, if there is indeed any of the above conditions in the case.
Who can request the withdrawal of the system?
Restructuring law authorises the submission of an application for repeal of the Agreement:
- the creditor,
- the debtor,
- the performance supervisor,
- other persons who, by virtue of the arrangement, are entitled to execute or supervise the implementation of the arrangement.
This catalog is closed. This means that another entities outside the listed directory simply do not have the right to request the repeal of the arrangement. The application shall comply with the requirements of the procedural document. It must include the request and its justification. The letter must clearly state all the circumstances showing that the debtor does not comply with the provisions of the arrangement or demonstrates that it is ‘obvious’ to its default in the future. The specified submission of the said application shall not prejudge the withdrawal of the Agreement. If the court is not satisfied with the reasons described by the applicant, they have rejected the application. specified a decision of the court acting in the form of a decision shall be brought only by the applicant.
However, if the court decides to revoke the arrangement, specified a decision may be challenged by the debtor and any creditor who had the right to vote at the gathering of creditors (with the agreement being adopted).
Repeal of the Agreement and enforcement of claims
Repeal of the strategy means that it ceases to apply. This in turn has far-reaching consequences, especially for creditors. In accordance with Article 179(1) Restructuring rights, if the strategy is repealed (and the expiry of the system):
- existing creditors have the right to claim their first claims,
- the sums paid under the arrangement shall be counted against the claims claimed.
It can so be said that, after the agreement has been repealed or terminated, the relation between the creditor and the debtor returns to its starting point. However, account must always be taken of the events that occurred during the implementation of the arrangement, including, above all, any form of satisfaction of the debtor’s claims.
We remind you that our law firm offers professional service and legal advice provided to entrepreneurs. We offer full legal assistance to those planning to start their business.
Our comprehensive advisory services are a consequence to individual client needs. We advise on the choice of legal form for the planned business, we will complete all the formalities of registering it with the applicable institutions, and then we will carry out ongoing legal service during its operation.
Our offer is legal assistance for any legal problems you may encounter as an entrepreneur in your business. Our comprehensive services and legal advice in the fields of commercial law, civilian law, labour law, economical law will aid you conduct business, saving time and money for our customers.
Form of cooperation:
- Individual one-off orders
- Ad hoc legal service
- Permanent legal service under contract
- Legal advice
- preparation of procedural documents
- actions
- Answers to lawsuits
- objections to orders for payment and order judgments
- appeals
- Conclusions
- consultancy, establishment and operation of business
- registration of companies in the KRS
- actions
- consulting on the trading of real property (full scope of services: acquisition, hire, including the drawing up of contracts: preliminary and appropriate and notary arrangement)
- Procedural representation in economical and civilian matters (for traders covered by permanent legal service)
- development contracts – preparation of improvement contracts for developers
- editing and evaluating contracts, applications and procedural documents
- preparation of contracts and their models
- negotiating contracts and contracts with counterparties, legal assistance to the Client during negotiations
- advice on labour law: creation of employment contracts, notices, regulations
- preparation of legal advice, taking into account doctrine and fresh case law
Do you request legal aid or do you request permanent service for your company? compose us or call us now.
579-636-527
Contact@legartis.pl
Legal basis:
