Insolvency court cannot refuse to start exclusive insolvency proceedings on the grounds that the debtor has insufficient assets to cover the costs of the procedure, these will be borne by the Romanian state. These amounts will be refunded prior, from the income resulting from the execution of the insolvency procedure.

Simultaneously with the commencement of insolvency proceedings, the court will appoint an insolvency practitioner, to act as judicial administrator.

The Decision of commencement of insolvency proceedings will be published without delay in the Insolvency Proceedings Bulletin or in other similar books. The start of insolvency proceedings will take place and will take effect by publication of the decision in the Insolvency Proceedings Bulletin.

All the debtor’s creditors are required to register claims against the debtor, within 20 days of the commencement of insolvency proceedings. The provisions of Law 84/2014 apply properly to the analysis process and to the contest of the claims, and the preparation and publication of the final list of claims.

The Judicial administrator will review the information on the debtor’s income and assets and prepare a list, within 20 days from the date of commencement of insolvency proceedings. After finalization of the list of goods and income the creditors will proceed to analyze the debtor’s proposal on the plan, in order to take a decision on it. This period cannot exceed 3 months. Subsequently to hearing the debtor and the judicial administrator, the insolvency court either will approve the plan will or will find the liquidation of the debtor’s assets.

The plan must comply with the following requirements:

a) Each unrelated unsecured creditor should receive a compensation of at least 40% of the nominal value of its debts registered on the list of claims, unless the lender agrees in writing to a lesser compensation.

b) Each unrelated secured creditor must receive at least the amount likely to be received from the proceeds of the sale of secured assets in favor of the secured creditor, based on the current market value of the guarantee.

c) No unrelated creditor cannot satisfy to an extent greater than or equal to any creditor unrelated and neither can he satisfy before unrelated creditors.

d) The chart of debt repayment cannot stretch over a period exceeding 5 years from the effective date of the plan, except for obligations on which the payer and the obligations that otherwise agreed.The plan may provide the liquidation of certain assets of the debtor and the distribution of proceeds to creditors. Proceeds from the secured assets in favor of the secured creditor may be distributed only to those secured creditors, unless the proceeds exceed the amount secured claims, in which case the excess revenues will be distributed to the remaining creditors.

The claims of creditors, who have not been reviewed by the judicial administrator and recorded, will cease to exist on the effective date of entry into force of the plan, except for those claims that cannot be extinguished. A creditor whose claim has been registered in insolvency proceedings, but was challenged by the judicial administrator, may request the debtor to repay its debt at a rate similar to other creditors repayment who are in the same category, to the extent that such claims have been confirmed by the Court after the approval of the plan.