The new procedure for approval of an arrangement meets the expectations of entrepreneurs in a difficult financial situation. It makes it possible to obtain relatively quick protection to secure the substance of a business that has a chance to “bounce back”.
Advantages of the revised procedure for approval of an arrangement:
- a formalized procedure that guarantees rapid protection of the entrepreneur’s assets
- obtaining protection consisting in the suspension, by operation of law, of enforcement proceedings initiated before the date on which the announcement is made
- obtaining protection consisting in the possibility of revoking the seizure made before the day of making the announcement on the determination of the day of arrangement
- obtaining protection consisting in the inadmissibility of directing execution to the assets of the entrepreneur included in the mass of arrangement
- restriction of the freedom of the counterparty of the restructuring entrepreneur to terminate contracts of fundamental importance for the operation of the debtor’s enterprise, including lease, rental and credit agreements
- the possibility of including in the composition agreement receivables in kind or secured by transfer of ownership as collateral