Delaying tactics may lead to out of court settlement with creditors for CLiF

Former president of leasing and finance company CLiF, Dariusz Baran, has begun moves designed to delay court proceedings against the company. CLiF was declared bankrupt in December, and the company subsequently lodged an appeal. Under a repossession order the creditor banks were supposed to take over CLiF assets, mainly cars, as a way of recovering part of what was owed them. Baran is attempting to stop the banks from claiming the company's property. CLiF has already withdrawn from previous credit agreements with the banks, a move that was ruled by the court to be illegal. Baran is now questioning the court's objection, and claims it is this ruling that has no legal standing. Analysts suggest CLiF's moves may compel the banks to reach an out-of-court settlement. Commenting on the situation, Jerzy Banka, legal adviser to the head of the Polish Banking Association (ZBP), said, "The banks do not want to pay the additional costs associated with an extension of the bankruptcy proceedings." (Puls Biznesu, p. 5) M.T.