According to the new regulations, the restructuring agreement in Romania represents one of the latest insolvency prevention procedures in Romania introduced by the Insolvency Law 85/2014 in Romania,which allows for the restructuring of the activities of companies experiencing financial difficulties. The aim of concluding a restructuring agreement in Romania negotiated with creditors whose claims are affected, is to rehabilitate the activities of the company, offering numerous advantages such as retaining the debtor’s right to manage the activities of the Romanian company, reduced court intervention, and the insolvency procedure in Romania cannot be initiated as long as the restructuring agreement in Romania is being implemented. The Romanian Law Firm Pavel Mărgărit and Associates recommends engaging the services of an insolvency lawyer or specialized in insolvency lawyers in Romania to benefit from expertise and legal assistance in concluding a restructuring agreement in Romania in accordance with legal provisions of insolvency law in Romania and to ensure that your interests are protected during insolvency prevention procedures in Romania.
Stages of the restructuring agreement procedure in Romania
The first stage involves formulating a restructuring agreement in Romania drafted by the restructuring administrator or the debtor with the assistance of the restructuring administrator and transmitted to creditors whose claims are affected by the debtor’s financial instability, through any means of communication that allow confirmation of receipt. After the communication of the restructuring agreement in Romania, negotiations between the debtor and the affected creditors follow, culminating in the voting and approval process of the restructuring agreement in Romania, which is then submitted for confirmation to the syndic judge. The request is resolved in
advising chamber, without summoning the parties as it is a non-contentious procedure in Romania.
If a restructuring agreement in Romania is confirmed by the insolvency judge, the debtor’s activities must be restructured in accordance with its provisions. The restructuring administrator will provide affected creditors with quarterly reports on the implementation of the agreement, highlighting the viability of the business, and the debtor is obliged to provide the administrator all necessary information for the reports, failure to do so is considered a failure of the agreement. An insolvency lawyer or specialized lawyers in insolvency in Romania can assist you throughout the insolvency prevention procedure in Romania to ensure that the conclusion of the restructuring agreement in Romania complies with the provisions of the insolvency law, particularly Law 85/2014 in Romania, and that all documents are completed and submitted within the deadlines set imperatively.
The restructuring agreement in Romania procedure ceases upon the pronouncement of a closing decision by the insolvency judge, if the provisions of the restructuring agreement in Romania are fulfilled, upon request of any party or the restructuring administrator, or if the provisions of the restructuring agreement fail to be fulfilled. From the confirmation of the restructuring agreement in Romania until the closure of this insolvency prevention procedure in Romania, the debtor is protected from being subjected to other insolvency prevention procedures in Romania or even in opening of insolvency proceedings in Romania at the request of an affected creditor.
Advantages of concluding a restructuring agreement in Romania
The restructuring agreement in Romania offers the advantage of proceeding through a non-contentious procedure, with the insolvency judge intervening only after the negotiation stage and creditor’s vote. Additionally, the insolvency law in Romania does not establish a time limit for negotiations or the drafting of the restructuring agreement in Romania, but the oversight of the restructuring administrator is mandatory for a period of three years. The debtor retains the right to manage the activities in accordance with regulations and common law, and the rights of employees remain unchanged according to the law and collective labor agreements. Finally, if the restructuring agreement in Romania is not executed, the reduced claims reemerge due to payments made during this procedure, whereas if the agreement is realized, the claims remain extinguished.
“Deep understanding of insolvency law in Romania and extensive experience in the field enable our team of specialized insolvency lawyers in Romania, bankruptcy proceedings in Romania and insolvency prevention procedures in Romania to offer clients high-quality consultancy and representation services in all aspects provided by Insolvency Law 85/2014 in Romania,” stated Dr. Radu Pavel, Coordinator Lawyer at The Romanian Law Firm Pavel Mărgărit and Associates.
The Romanian Law Firm Pavel Mărgărit and Associates invites you to confidently contact our team of specialized insolvency lawyers in Romania for guidance and professional assistance in any proceedings related to insolvency in Romania, such as arrangement with creditors in Romania, bankruptcy proceedings in Romania, opening of insolvency proceedings in Romania and insolvency prevention procedures in Romania, by filling out the contact form at https://avocatpavel.com/contact/.
The new regulations have introduced the restructuring agreement in Romania as an essential insolvency prevention procedure in Romania under Law 85/2014, alongside arrangement with creditors in Romania, which allows for the restructuring of the activities of a company. By negotiating a restructuring agreement in Romania with affected creditors, numerous advantages are obtained, such as retaining the right to manage the company for the debtor, limiting court intervention, and avoiding opening of insolvency proceedings in Romania during the implementation of the agreement. To ensure the conclusion of a restructuring agreement in Romania in compliance with the insolvency law and the protection of interests during insolvency prevention procedures in Romania, the Romanian Law Firm Pavel Mărgărit and Associates recommends engaging the services of a specialized insolvency lawyers in Romania, who can offer advice on all aspects of the restructuring procedure, according to insolvency Law 85/2014 in Romania and choose the best strategy for the specific situation of each company. Additionally, our specialized insolvency lawyers in Romania handle other important aspects such as arrangement with creditors in Romania, opening of insolvency proceedings in Romania, bankruptcy proceedings in Romania and other relevant legal procedures in financial restructuring and insolvency in Romania.