Securing different creditors' claims within an arrangement with a single mortgage as an arrangement option

The paper shows that under the current legal framework there is a possibility to secure claims of different creditors that are subject to an arrangement by one mortgage (mortgage administrator) notwithstanding the fact that the Polish legislator has not expressly provided for such an arrangement proposal in the Law on Bankruptcy and Reorganization and in the Act on the Land Register and Mortgage. The following conditions need to be fulfilled in order to appoint a mortgage administrator both within insolvency proceedings with an arrangement option and within the reorganization proceedings: (i) arrangement proposal, (ii) acceptance of the arrangement by the creditors and (iii) the approval of the arrangement by the court, (iv) the conclusion of an agreement appointing an administrator and (v) the entry into the Land Register.