Actio pauliana in restructuring proceedings

What are restructuring proceedings?

Restructuring proceedings consist in the fact that the property used to run a given enterprise becomes a restructuring estate from which creditors are satisfied, and the management of this estate is transferred to the administrator. The debtor is therefore removed from managing the enterprise and replaced by a restructuring advisor. , i.e. for ordinary, standard activities undertaken on a daily basis. Actions taken by the administrator of the restructuring estate may include, for example, withdrawal from a contract that is unfavorable for the company or reduction of employment. These actions may also include actio pauliana.

What is actio pauliana in restructuring proceedings?

Actio pauliana is a legal institution in which there are three parties – the debtor, the creditor and a third party. Pursuant to the Civil Code, this is a claim to determine the ineffectiveness of a legal action which, during restructuring proceedings, led to the depletion of the company’s assets. Most often, this applies to donation contracts, real estate sales or perpetual usufruct. The action itself is brought by the administrator of the restructuring estate against a third party for recognition of the ineffectiveness of an action that turned out to be unfavorable for the entrepreneur. This type of right is essentially intended to improve the financial situation of the enterprise by returning assets or getting rid of unfavorable liabilities (e.g. unfavorable contracts). At the same time, it should be borne in mind that the restructuring advisor (or other administrator) has a limited time limit for filing an actio pauliana. In the case of restructuring proceedings, this is one year from the opening of these proceedings, and therefore, after their expiry, it is not possible to request that the legal act be recognized as ineffective.

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