Vol 22 (2025) - Issue 4

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Cross-Class Cramdown in Poland: Current Legal Framework and Upcoming Changes

Synopsis
This article discusses the Polish legal framework of cross-class cramdown, a mechanism that enables the adoption of a restructuring plan binding dissenting creditors across different groups. While cross-class cramdown has been available in Poland since 2016, significant changes in this area are currently being proceeded, aimed at implementing the European Union directive on preventive restructuring frameworks. The Directive provides for a number of conditions protecting creditors from potentially unfair results of application of this mechanism, most notably the 'relative' or 'absolute priority rule'. Below, we briefly outline the upcoming legislative changes to the Polish legal framework, which will introduce stricter provisions and new legal measures concerning cross-class cramdown.