DZP runs precedential restructuring proceedings

DZP is advising WGE Development on the restructuring of liabilities under ten bond series vis-a-vis 120 bondholders in precedential, accelerated arrangement proceedings. The case is being heard by the restructuring court in Warsaw.

This is the second restructuring case in Poland carried out vis-a-vis a bond issuer and the first to be heard by the court in Warsaw. It is aimed at an arrangement being made between WGE Development and the holders of its bonds – a bank financing the company and other creditors.

Restructuring proceedings were introduced to Polish law on 1 January 2016 and implement a second-chance policy for businesses. The proceedings currently underway are pioneer, as they are based on entirely new regulations. Among these proceedings, the case run by DZP is precedential for two reasons: it is one of only a few accelerated arrangement proceedings in Poland, and it is a special procedure as it is based on provisions on the restructuring of bond issuers.

The DZP lawyers handling the case are Marek Świątkowski, Partner, Igor Barcew, Senior Associate, and Michał Cecerko, Associate.