A Warsaw-based holding company discovers that its subsidiary in another EU member state has stopped paying creditors. Meanwhile, the Polish parent is itself under financial pressure. Two insolvency proceedings – in two jurisdictions – may now run in parallel, each with its own court, its own administrator, and its own deadline for board action. The question is not whether Polish law applies. It is how Polish law interacts with the foreign procedure, and what the board must do first.

Cross-border insolvency involving a Polish entity is governed primarily by EU Regulation 2015/848 on insolvency proceedings (the Recast EIR), which applies across EU member states and determines which court has jurisdiction based on the debtor's centre of main interests (COMI). Polish insolvency law – the Prawo restrukturyzacyjne (Restructuring Law) and the Prawo upadłościowe (Insolvency Law) – runs alongside the Recast EIR and fills procedural gaps. Boards of Polish companies face a 30-day filing deadline once insolvency is established; missing it triggers personal liability for the full value of unsatisfied creditor claims.

This alert covers three things: what the current framework requires, which companies are most exposed, and the immediate steps boards should take. The analysis is relevant for any Polish entity with foreign operations, foreign debt, or a foreign parent facing financial distress.

What does the cross-border insolvency framework require of Polish boards?

The Recast EIR assigns jurisdiction to the court in the member state where the debtor's COMI is located. For a Polish company, that is ordinarily the District Court (Sąd Rejonowy) in the city where the registered office sits – Warsaw, Kraków, or elsewhere. Main proceedings opened in Poland bind creditors across all EU member states. Secondary proceedings can be opened in another member state where the debtor has an establishment, but they are limited to assets located there.

Polish insolvency law imposes a 30-day deadline on board members to file for insolvency once the company becomes insolvent. Insolvency is triggered either by payment default lasting more than three months or by liabilities exceeding assets for more than 24 months. Both tests run independently. A board that misses the 30-day window forfeits the ability to limit personal liability – that consequence is irreversible once the deadline passes.

Where a foreign main proceeding has already been opened – for instance, in Germany or the Netherlands – the foreign administrator may seek recognition in Poland through the National Court Register (Krajowy Rejestr Sądowy, KRS). Recognition is not automatic. The Polish court examines whether recognition would be contrary to public policy. This review typically takes four to eight weeks, during which Polish assets may remain exposed.

  • COMI determines which court opens main proceedings
  • Secondary proceedings are limited to local assets
  • The 30-day board filing deadline runs from the insolvency trigger, not from any court order
  • Recognition of foreign proceedings in Poland requires a separate KRS application
  • Public-policy review can delay asset protection by up to eight weeks

We secured a reversal of an administrator's asset-freeze decision protecting assets worth over PLN 8m for a manufacturing client in the Mazowieckie region (autumn 2025). The reversal turned on the correct identification of the debtor's COMI – a point the original filing had left ambiguous.

Who is affected, and what must they do immediately?

Any Polish company with cross-border exposure falls within this framework. Three categories carry the highest immediate risk. First, Polish subsidiaries of foreign groups where the parent has entered insolvency abroad – the subsidiary's own solvency must be assessed independently; the parent's filing does not suspend the Polish board's obligations. Second, Polish companies with significant foreign-currency debt exceeding EUR 500,000, where exchange-rate shifts may have already triggered the balance-sheet insolvency test. Third, Polish holding companies with establishments in other EU member states, where secondary proceedings could be opened without prior notice to the Polish board.

The Polish Financial Supervision Authority (Komisja Nadzoru Finansowego, KNF) monitors regulated entities separately. For non-regulated companies, the Office of Competition and Consumer Protection (Urząd Ochrony Konkurencji i Konsumentów, UOKiK) may intervene if insolvency intersects with competition concerns – for example, where a distressed sale amounts to a notifiable concentration. Boards should not assume that insolvency proceedings operate in isolation from regulatory oversight.

Pre-pack arrangements – where a sale of the business is agreed before formal proceedings open – are available under Polish restructuring law and can preserve enterprise value that a standard liquidation would destroy. A pre-pack requires court approval and must be filed within the same 30-day window. Missing that window does not merely delay the pre-pack; it closes the door entirely, exposing board members to white-collar defence proceedings if creditors allege deliberate delay.

For a foreign investor's Polish subsidiary, the interaction between the Recast EIR and local restructuring tools creates a narrow window for action. Our team obtained interim measures protecting assets worth over EUR 3m for a German investor's subsidiary in Lower Silesia (spring 2026), using an accelerated arrangement procedure filed within 21 days of the insolvency trigger being identified.

Immediate action items for boards facing cross-border insolvency exposure:

  • Commission a solvency assessment within seven days of any payment default or balance-sheet concern
  • Identify the COMI of each group entity before any filing is made
  • Assess whether a pre-pack or accelerated arrangement is viable within the 30-day window
  • Notify the board formally and document the date the insolvency trigger was identified

For further context on how Polish insolvency rules interact with foreign jurisdictions beyond the EU, see our analysis of cross-border insolvency involving Poland and Romania. Boards of companies with international workforces should also review the implications for employment contracts – our guide on hiring foreign nationals in Poland addresses continuity of employment in restructuring scenarios. Where personal liability of board members is in question, the detailed analysis of board liability for tax arrears is directly relevant.

Specific cross-border insolvency situations require tailored analysis before the 30-day deadline expires. Waiting for a court order before acting forfeits the restructuring options that could otherwise preserve the business.

To receive an expert assessment of your company's cross-border insolvency exposure, contact info@kordeckipartners.com.

KORDECKI & Partners is a law firm based in Warsaw and Krakow, advising business clients across 30 jurisdictions. Our team combines expertise in Polish and international law with a practical approach to restructuring, insolvency, and cross-border proceedings. We work with Polish entrepreneurs, foreign investors, and in-house legal teams. To discuss your situation, contact info@kordeckipartners.com.

Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. KORDECKI & Partners assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@kordeckipartners.com.