Warsaw, 25 May 2020 – Postponing the obligation to file for bankruptcy for a period after the outbreak has been declared may be abused. There is a serious risk that an unreliable debtor in the insolvency zone will use the extra time to siphon assets outside a company. In the long run, this type of activity will result in huge payment bottlenecks and a wave of bankruptcies, meaning the losses to creditors. "The lack of solutions to encourage restructuring will hit companies which should react now before it is too late to recover," – warns Lech Giliciński, partner and head of the Restructuring, Insolvency and Distressed Assets practice at the Wolf Theiss Warsaw office.
