Mediation in the conclusion of an arrangement in bankruptcy proceedings

Abstract

Making an arrangement in bankruptcy is an alternative to liquidation bankruptcy proceedings. Despite its practical significance, the role of mediation in this context remains largely unexplored in Polish legal literature, which justifies the relevance of this study. The aim is to determine the potential use of mediation in arrangement procedures during bankruptcy proceedings and to assess the validity of proposed legislative changes in this area. The research is based primarily on legal-dogmatic methods. The Bankruptcy Law provides only a basic framework for arrangements, referring broadly to the provisions of the Restructuring Law or detailed regulation. In both restructuring and bankruptcy arrangement procedures, negotiations, and mediation are essential for achieving a positive vote and gaining the support of as many creditors as possible. This support not only influences the outcome of the vote but also determines whether liquidation of the bankruptcy estate is suspended and whether a creditors’ meeting is convened. The mendment to the Restructuring Law formally introducing mediators into these proceedings should be seen positively, as it enhance negotiation effectiveness. Mediation may also play an important role in cases involving non-participants in bankruptcy proceedings, namely creditors with optional arrangement claims, employees and trade unions, and investors.