InsolvencyofCompaniesin

Romania
Legal Framework
Law no. 85/2006 regarding insolvency
Law no. 85/2014
/
regarding
di insolvency
i l

Applicable Law
ApplicableLaw
Law
Lawno.85/2006regardinginsolvencyis
no 85/2006 regarding insolvency is
applicabletothefilesthatwerealready
registered and admitted by courts for the
registeredandadmittedbycourtsforthe
timeframe2006 June2014
Lawno.85/2014regardinginsolvencyis
Law no 85/2014 regarding insolvency is
applicabletothefilesthatwereregisteredand
admitted by courts beginning with July 2014
admittedbycourtsbeginningwithJuly2014

Participantsinaninsolvencyor
b k
bankrupcy
fl
file
Thecompany,whichisrepresentedbyaninsolvencypractitioner
(Romanian:practician ininsolventa).Ifthecompanyisininsolvency
thejudgeappointsaninsolvencypractitionertobethejudicial
administrator (Romanian:administratorjudiciar)ofthecompany.If
th
thecompanyisinbankrupcy,thejudgeappointsaninsolvency
i i b k
th j d
i t
i l
administratortobethejudicialliquidator (lichidator judiciar)ofthe
company.
Thecreditorsofthecompany,whoarerepresentedbylawyersor
Th
dit
f th
h
t db l
bytheirownadministrators;
Thespecialadministrator,whoistherepresentativeofthe
shareholders of the company
shareholdersofthecompany;
Thejudge,whoistheonethatchecksthattheproceedingsunfolds
accordingtothelaw.

Insolvency and bankrupcy

Insolvencyandbankrupcy
Insolvency isthestateofthepatrimonyofadebtorthat
cannotpaythedebtsthatarecertain,liquidandexigible
(Romanian:certe,lichidesiexigibile)eitherin60daysfrom
theduedate(relativeinsolvency)orincaseitisproventhe
thedebtorshallnotbeabletopaythemwiththeavailable
fundsontheduedate(imminentinsolvency).
is the collective and egalitarian insolvency
Bankrupcy isthecollectiveandegalitarianinsolvency
proceedingsthatappliestoadebtorinordertoliquidatethe
patrimonyofthedebtorandtocoverthedebtsofthedebtor.
It also includes the erasure/ cancellation of the debtor from
Italsoincludestheerasure/cancellationofthedebtorfrom
theregistrywhereithasbeenregistered(usually,theTrade
Registry).

Stages of an insolvency/ bankrupcy file

Stagesofaninsolvency/bankrupcyfile
The
Thefirststepisfilingtheapplicationbyacreditor
first step is filing the application by a creditor
orbythedebtortoacourtinordertobe
declaredinsolvent/bankrupt.Theminimum
/
p
amountofthereceivableofacreditorinorderto
filesuchanapplicationisofRON40.000.
Ifthecourtapprovestherequest,itshallappoint
ajudiciaryadministratororajudiciaryliquidator
j
y
j
y q
(dependingifthecompanyisinsolventor
bankrupt).

Stages of an insolvency/ bankrupcy file

Stagesofaninsolvency/bankrupcyfile
After
Afterthejudiciaryadministratorisappointed,it
the judiciary administrator is appointed it
shalldrawatableofthecreditorsofthecompany
andtheyshallmakeuptheassemblyofthe
y
p
y
creditorsofthecompany;
Dependingontheeconomicstateofthe
Depending on the economic state of the
company,thejudiciaryadministratorshalldrawa
reorganisationalplandescribinghowthe
g
p
g
creditorsshallrecovertheirreceivablesfromthe
debtororatleastpartoftheirreceivables;

Stages of an insolvency/ bankrupcy file

Stagesofaninsolvency/bankrupcyfile
If
Ifsuchareorganisationalplanisnotdrawnor
such a reorganisational plan is not drawn or
isnotapprovedbythecreditors,thedebtor
company shall enter into bankrupcy
companyshallenterintobankrupcy
proceedinds,meaningthatalltheassetsof
the company shall be sold and the money paid
thecompanyshallbesoldandthemoneypaid
tothecreditors,accordingtothepreference
order of the creditors (for example creditors
orderofthecreditors(forexample,creditors
thathaveguaranteesfromthedebtorare
preferred to the rest of the creditors)
preferredtotherestofthecreditors).

Advantagesofenteringinsolvency
proceedings
d
From
Fromtheopeningoftheinsolvency
the opening of the insolvency
proceedingsalljudiciaryactions,
enforcementsandextrajudiciaryactions
againstthedebtoraresuspended;
Theopeningofthepreceedingssuspends
prescriptionofthoseactions;
Theopeningoftheinsolvencyprohibitsthe
addingofpenaltiesorinteresttothe
receivablesofthecreditors.

Disadvantagesofenteringinsolvency
proceedings
d
Thecontrolofthecompanydoesnotlonger
p y
g
belongtotheadministratorofthecompany.His
actionshavetobeapproved/supervisedbythe
judiciary administrator and/ or the creditors of
judiciaryadministratorand/orthecreditorsof
thecompany;
Incasethereorganisationalplanofthecompany
isnotapprovedbythecreditors,thereisariskof
enteringbankrupcyandlosingalltheassetsof
the company;
thecompany;
Theriskfortheformeradministratortobeheld
liableforthebankrupcyofthecompany.

Thank you!
Thankyou!
DanielaGrigoras
Daniela
Grigoras
lawyerandinsolvencypractitioner
0 22 3 890
0722513890
cabinetdeavocat.dg@gmail.com