Actio pauliana in restructuring proceedings
Restructuring proceedings are one of the restructuring proceedings which, to the fullest extent, aim to improve the financial condition of the enterprise and its return to financial liquidity. For many enterprises, this is the most advantageous solution, but only a consultation with a restructuring advisor will allow the selection of appropriate measures.
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.
If you are interested in the possibility of repairing your company and improving its financial liquidity, please contact us.
Author:
Grzegorz Streckbein
Advocate
Advocate. He completed his legal studies at the Faculty of Law and Administration of the University of Silesia in Katowice. In his daily practice, he deals primarily with issues related to the day-to-day service of business entities, with particular emphasis on corporate service. His interests also include reorganization and mergers and acquisitions (M&A) matters. He advises management boards and supervisory boards of capital companies.
Contact a specialist
Bailiff seizure of accounts, enforcement of movable and immovable property
Many people encounter a situation in which a bailiff takes enforcement actions due to unpaid liabilities. If a person encounters...
Consumer bankruptcy and debt guarantee
Guaranteeing a debt in a consumer's bankruptcy has significant consequences for the guarantor. When a debtor decides to declare...
Apartment reservation agreement
The reservation agreement, in accordance with the applicable Act of May 20, 2021 on the protection of purchasers of residential...