In the course of restructuring proceedings, a debtor’s assets may be monetized, either through a liquidation arrangement or through a sale under Article 323 of the Restructuring Law. The choice of the right instrument is crucial to the course of the proceedings, the situation of creditors, and the legal consequences for the buyer.
On February 19, during a training session organized by Wolters Kluwer, "Sale under Article 323 of the Restructuring Law and under an arrangement - differences, advantages and disadvantages," the most important aspects of both solutions - from the perspective of restructuring practice - were discussed.
The training was conducted by Katarzyna Kostępska, attorney-at-law and partner at KKG Legal, and Grzegorz Pokrzywka, attorney-at-law and senior counsel at KKG Legal.
The training program included:
§ objectives of asset sales in restructuring and available instruments,
§ the essence and construction of a liquidation arrangement,
§ sale of assets pursuant to Article 323 of the Restructuring Law in sanation proceedings,
§ comparison of the legal consequences of the two modes (including for the purchaser),
§ principles of distribution of the sum obtained from the sale,
§ advantages and limitations of both solutions,
§ the most common practical problems and recommendations.
The training helped to organize knowledge and facilitated the selection of the optimal mode of sale in specific factual situations - taking into account the interests of the debtor and creditors.