Wolf Theiss: Polish Supreme Court rules in precedential case concerning bankruptcy proceedings for banks – BILD

Concerning the scope of rights of financing
banks in bankruptcy proceedings, the Polish Supreme Court ruled in a
major and precedential case following arguments presented by Wolf
Theiss.

After several months of litigation, the Polish Supreme Court has
ruled in a major and precedential case: The Court agreed with the
legal arguments presented by Wolf Theiss lawyers and concluded that
rents collected in the course of bankruptcy proceedings by a
bankruptcy receiver out of real property encumbered with a mortgage
are part of a separate distribution plan and, thus, may only be paid
out to the creditors holding such mortgage. The ruling was triggered
by an appeal filed on behalf of an international commercial real
estate financing bank against a refusal to award to the bank all the
rents – approximately EUR 2 million – collected in the course of
bankruptcy proceedings by the bankruptcy receiver out of two office
buildings charged with the bank–s mortgages.

Previously the bank had been awarded EUR 20 million following a
successful complaint filed by Wolf Theiss after taking over the
matter from a major international law firm.

Wolf Theiss Counsel Daniel Klementewicz: „The Supreme Court ruling
is of great importance for the commercial real estate market in
Poland as it ensures the fullest possible scope of a mortgage and a
coherent practice of the bankruptcy courts and the receivers in
Poland.“ Prior to the ruling, proceeds out of real property were
usually distributed in a general division plan as they were treated
as profits generated by the bankrupt–s enterprise.

Find out more at www.wolftheiss.com

Rückfragehinweis:
Georg Baldauf
Marketing & Communications Manager
Wolf Theiss Rechtsanwälte / Attorneys-at-Law
Schubertring 6, 1010 Vienna
Austria
Tel.: +43 1 51510 / 3808
E-Mail: georg.baldauf@wolftheiss.com

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