The preventive agreement concluded with creditors in Romania consists of a contract between the debtor and the creditors by which the creditors’ requirements are met, with personal and patrimonial implications, being carried out instead of the bankruptcy proceedings. The preventive agreement with creditors in Romania consists of financial recovery measures. The Romanian Law Firm Pavel, Mărgărit & Associates recommends contacting a Romanian lawyer specialized in commercial, insolvency/restructuring and insolvency proceedings to provide you with guidance on the opening of the agreement with creditors procedure.
The debtor in difficulty may resort to the agreement with creditors procedure in Romania. The jurisdiction to settle claims relating to the procedure of the arrangement with creditors in Romania lies with the syndic judge of the court in whose jurisdiction the debtor’s headquarter is located.
What are the powers of the syndic judge?
According to Law 85/2014, the syndic judge rules on:
- a) the resolution of the request for the opening of the procedure of agreement with creditors;
- b) appointment of the administrator contracted by the debtor;
- c) approval, at the request of the administrator, of the restructuring plan;
- d) verification of the legality of the formation of categories and subcategories of claims in order to exercise the right to vote on the restructuring plan;
- e) the judgment of appeals;
- f) ordering, by hearing report, the maintenance or extension of the forced execution against debtors or the withdrawing of the forced execution;
- g) the resolution of the request for closure of the procedure of agreement with creditors;
- h) any other duties provided for by law.
A lawyer specialized in commercial law, insolvency/restructuring, bankruptcy proceedings in Romania can guide you through the preventive agreement with creditors procedure in Romania.
How to start the preventive agreement with creditors procedure in Romania?
According to Law 85/2014, the preventive agreement with creditors procedure in Romania starts by a request to open the agreement with creditors procedure. If the conditions are met, the syndic judge will admit the request and order the opening of the agreement with creditors procedure. The hearing report shall also be communicated to the register in which the debtor is registered.
Within 60 days of the opening of the agreement with creditors procedure, the administrator shall draw up the restructuring plan to meet the creditors’ requirements.
The restructuring plan is submitted to the creditors’ vote, and after its approval, it is submitted to approval by the syndic judge within a maximum of 3 days from the end of the minutes of approval of the restructuring plan. The moment of approval of the restructuring plan shall be the time of the opening of the agreement with creditors procedure in Romania. From the moment of the opening of the procedure, both the forced executions directed against the debtor and the course of the statute of limitation to request forced execution are suspended for a period of maximum 4 months, but not later than the date of the decision approving the restructuring plan or closing the procedure.
From the date of approval until the date of ruling a court decision terminating the proceedings of the preventive agreement of creditors procedure in Romania, insolvency proceedings against the debtor cannot be opened at the request of an affected creditor.
The Romanian Law Firm Pavel, Mărgărit & Associates recommends contacting a lawyer specialized in commercial law who can advise you with opening the procedure of preventive agreement with creditors to meet their requirements.