Many Romanian companies have to open the insolvency procedure in Romania, given the fact that, amid the financial crisis and other difficulties, they fail to pay their debts to suppliers or customers in Romania. On the Romanian business market there are insolvency and reorganization lawyers, which can help companies overcome this situation in the best conditions, point out the insolvency lawyers from Pavel, Margarit & Associates Romanian Law Firm. The insolvency and reorganization lawyers from Pavel, Margarit & Asociates Romanian Law Firm have over 10 years of practice in this field.
If a Romanian insolvent firm hires an insolvency and reorganization lawyer in Bucharest, the chances are that it will recover soon and the reorganization procedure will be successful. The lawyers specialized in insolvency with which the firm will collaborate in insolvency, be it insolvency and reorganization lawyers or insolvency practitioners, must be carefully chosen, so that the Romanian insolvent firm has a good co-operation with them, and the company recover soon.
Law 85/2014 regarding the insolvency procedures in Romania provides that those debtors who are unable to pay the debt to the creditor 60 days after maturity are insolvent. The same insolvency law provides that insolvency is imminent when it is proved that the debtor will not be able to pay at maturity the debts committed with the funds that will be available at maturity. Law 85/2014 regarding the insolvency procedures in Romania imposes a value of the debt for which insolvency can be claimed. This is 40,000 lei (8,700 Euro) for both the debtor and the creditor.
Opening of the insolvency proceedings against the debtor in Romania may be requested by the debtor, its creditors or other persons or institutions provided by law.
In the case of the debtor, filing the application for insolvency in Romania is not only an option but also an obligation when the conditions for insolvency are met. Law 85/2014 regarding the insolvency procedures in Romania stipulates that the debtor is obliged to file the application within 30 days of the occurrence of insolvency. The debtor may also submit the claim if it considers that the occurrence of insolvency is imminent. Law 85 also stipulates that the premature introduction of a request for the opening of the procedure, by the debtor, raises the patrimonial liability of the debtor for the damages suffered.
Companies that believe that the situation of default is unavoidable may file for insolvency in Romania. A due diligence of the insolvent firm in Romania can also be done by a Romanian law firm which, in addition to the service of submitting application to the court, has experience on the restructuring side. Such a Romanian law firm can do an insolvency due diligence procedure to ascertain the real situation of the firm so that it can be rectified, recommends insolvency lawyers from Pavel, Margarit & Associates Romanian Law Firm.
Entering the insolvency procedure is advisable to be demanded by the debtor, as he is the one who best knows the company’s current financial strength and prospects for further development.
By filing the application for insolvency, the debtor may choose the legal administrator, a specialist with whom to cooperate during the proceedings so that the recovery of his company is possible without prejudice to the creditors. It often happens that when the procedure is opened by a creditor, which names the judiciary administrator, between the administrator and the debtor there is a cold relationship. Even though the legal administrator imposed by the debtor may be changed at the first meeting of the creditors, the administrator may, meanwhile draw up the report on the causes and circumstances led to the appearance of insolvency.
The debtor’s application must be accompanied by the following documents:
a) the last annual financial statement, certified by the administrator and the censor / auditor, the verification balance for the month preceding the date of registration of the request for the opening of the procedure;
b) the complete list of all the debtor’s assets, including all the accounts and banks through which the debtor runs its funds;
c) the list of creditors’ names and addresses, however, their claims: cert or conditional, liquid or illiquid, maturing or non-occurring, uncontested or contested, showing the amount, cause and preference rights;
d) the list of payments and patrimonial transfers made by the debtor in the 6 months preceding the filing of the application;
e) the profit and loss account for the year preceding the filing of the application;
f) the list of the members of the economic interest group or, as the case may be, of the associates with unlimited liability, for the collective and the limited companies;
g) a statement by which the debtor shows his intention to enter into a simplified or reorganized procedure, according to a plan, by restructuring the activity or by liquidation, in whole or in part, of the wealth in order to settle his debts;
h) a brief description of the ways it envisages activitys reorganization;
i) a declaration on own responsibility, authenticated by a notary or certified by a lawyer, or a certificate from the register of agricultural companies or, as the case may be, the trade register office or other registers in whose territorial range the professional headquarters / which results if it has been subjected to the judicial reorganization procedure provided by the present law within 5 years prior to the filing of the application;
j) a declaration on own responsibility, certified by a notary or certified by a lawyer, showing that he or the directors, directors and / or shareholders / associates / associate shareholders holding control of the debtor have not been finally convicted for committing an intentional crime against patrimony, corruption and service, as well as for the offenses provided by the Law no. 22/1969, as amended, Law no. 31/1990, republished, as subsequently amended and supplemented, Law no. 82/1991, republished, as subsequently amended and supplemented, Law no. 21/1996, republished, as subsequently amended and supplemented, Law no. 78/2000, as subsequently amended and supplemented, Law no. 656/2002, republished, as subsequently amended, Law no. 571/2003, as subsequently amended and supplemented, Law no. 241/2005, as subsequently amended, and the offenses provided by this law during the last 5 years before the opening of the procedure;
k) a certificate for admission to trading on securities or other issued financial instruments on a regulated market;
(l) a statement by which the debtor indicates whether he is a member of a group of companies, specifying them;
m) the proof of the unique registration code;
n) proof of notification to the competent fiscal body.
It is important to know that if a Romanian insolvent firm is advised by a Romanian lawyer specialized in insolvency and restructuring area, company’s chances of recovering are higher. The specialists with whom the Romanian firm will collaborate in insolvency, be they insolvency and restructuring lawyers in Romania or insolvency practitioners, must be well-chosen, in order to have a good co-operation that will make it possible for the company to recover and restructure.
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Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, which offers legal services at the highest quality, beyond clients expectations. The Law Firm approaches the cases with maximum professionalism and dedication. Its ultimate goal is obtaining exceptional results and achieving the clients objectives, in a time efficient manner. Among Pavel, Margarit & Associates clients are top multinationals and local companies. In 2017, the success stories of the Romanian Law Firm have brought recognition of the most prestigious international guides and publications. Thus, Pavel, Margarit & Associates Romanian Law Firm ranked second place in Romania in the rankings of business law firms with the most relevant expertise this year, realised by the Legal 500 publication, the most prestigious guide for law firms in the world, based in London, UK. The law firm is also recognized internationally by IFLR 1000 Financial and Corporate Guide 2017. Pavel, Margarit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice. All the relevant information regarding Pavel, Margarit & Associates Romanian Law Firm including areas of practice and the most important deals can be found on the website ww.avocatpavel.com, which is one of the most complex law firm websites in Romania.