Judicial reorganization in Romania
Insolvency lawyer in Romania. What means reorganization of the company in Romania?
A judicial reorganization of the company in Romania is a legal procedure that applies to the debtor after the opening of the insolvency procedure in Romania in order to pay off their debts. The reorganization of the company in Romania involves the drafting, approval, confirmation, implementation, and compliance with the plan for reorganization, in accordance with the provisions of the Romanian Law no. 85/2014 on insolvency prevention and insolvency procedures.
After the initiation of the insolvency procedure in Romania, the judicial administrator must mention in the report whether the debtor can be subjected to a judicial reorganization or if the bankruptcy in Romania will follow, when restructuring is no longer possible. To the extent that there are chances of recovery of the debtor’s economic situation under the insolvency proceedings in Romania and the debtor or creditors initiate a judicial reorganization, measures such as total or partial liquidation of the debtor’s assets, restructuring of activities, or modification of the capital structure can be adopted. All measures taken in this regard are included in the plan for reorganization.
The Romanian Law Firm Pavel Mărgărit and Associates recommends resorting to the services of a judicial reorganization lawyer in Romania or an insolvency litigation lawyer in Romania to ensure that the judicial reorganization procedure can be followed.
Insolvency litigation lawyer in Romania. The plan for reorganization
The plan for reorganization represents the basis on which the debtor conducts its activity until the closure of the judicial reorganization procedure or, as the case may be, until entering bankruptcy in Romania. The plan for reorganization can be drawn up by the debtor, creditors, or the judicial administrator appointed to supervise the procedure. Regardless of the party intending to draft a plan for reorganization, the proposal deadline is 30 days from the date of the finalization of the final claims table.
Regarding the debtor, it is very important to mention that they cannot propose a plan for reorganization if they have benefited from the judicial reorganization of the company in Romania within the 5 years prior to the formulation, or if they have been definitively convicted for committing an intentional crime against property, corruption, service, forgery, or similar offenses, in the last 3 years before the decision to open the insolvency procedure in Romania. Also, the debtor needs the approval of the general meeting of shareholders/associates.
The Romanian Law Firm Pavel Mărgărit and Associates has extensive experience in reorganization and insolvency in Romania, which is why it can offer legal advice to ensure the legality of all steps. Creditors can propose the plan for reorganization if they hold together at least 20% of the total value of claims included in the final claims table. The judicial administrator can also draft the plan for reorganization, provided the intention is expressed before voting on the report. For drafting the plan for reorganization, the judicial administrator must provide the creditor with all necessary information and documents, the list of all claims arising during the procedure, as well as any other requested documents that could help in drafting an effective reorganization strategy. The documents must be provided to the creditor within a maximum of 10 days from the request, provided the debtor’s right of administration has been lifted, according to the provisions of the Romanian Law no. 85/2014 on insolvency prevention and insolvency procedures.
An insolvency lawyer in Romania or a judicial reorganization lawyer in Romania can provide personalized legal assistance to determine if all necessary conditions are met for the debtor to be subjected to judicial reorganization or, as the case may be, to enter directly into bankruptcy through the simplified insolvency procedure.
Judicial reorganization lawyer in Romania. Confirmation and Publication of the Plan for Reorganization
The plan for reorganization is submitted to the registry of the tribunal in whose territorial jurisdiction the company’s headquarters is located and to the Trade Register Office. The Romanian Law no. 85/2014 on insolvency prevention and insolvency procedures stipulates that the judicial administrator has the obligation to publish an announcement in the Insolvency Proceedings Bulletin regarding the date of the vote on the plan by the creditors’ meeting, within 5 days from its submission.
The creditors’ meeting will vote on the plan for reorganization based on the following categories of claims: claims benefiting from preferential rights, wage claims, budgetary claims, indispensable creditors’ claims, and unsecured claims. The plan is considered accepted by a category of claims if it obtains an absolute majority of the value of the claims in that category.
The Romanian Law Firm Pavel, Margarit and Associates provides legal advice and legal assistance services in the insolvency procedure, especially regarding assistance in judicial reorganization in Romania. An insolvency litigation lawyer in Romania can support you in reorganization of the company in Romania, having great experience in the insolvency proceedings. In order to benefit from our professional support and for judicial reorganization lawyer advice, we invite you to fill in the contact form available on our website https://avocatpavel.com/contact/.
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The legality of the plan for reorganization can be contested by creditors, together with the decision of the creditors’ meeting, through a request addressed to the court, which will resolve the disputes and confirm the plan for reorganization within a maximum of 15 days from the submission to the tribunal by the judicial administrator of the minutes of the creditors’ meeting. Following the confirmation of the plan by the syndic judge, the debtor is obliged to comply with all the measures imposed in the plan for reorganization in its activities. If the syndic judge does not confirm any plan and the proposal period has expired, the court will order the commencement of the bankruptcy in Romania. The execution of the plan cannot exceed 3 years from the moment of its confirmation.
The Romanian Law Firm Pavel Mărgărit and Associates can provide legal advice to ensure the legality of all steps in the reorganization of the company in Romania. A judicial reorganization lawyer in Romania or an insolvency litigation lawyer in Romania can offer personalized legal assistance to determine if all necessary conditions are met for the debtor to be subjected to judicial reorganization or to enter directly into bankruptcy through the simplified insolvency procedure.
Attorney for reorganization and insolvency in Romania. Effects of the Judicial Reorganization Procedure
As a result of the confirmation of the plan for reorganization, the debtor’s activity is conducted according to this plan, and the claims and rights of creditors are accordingly modified. If the company enters bankruptcy in Romania, the final claims table is revised considering the debts settled during the judicial reorganization period.
A judicial reorganization lawyer in Romania or an insolvency litigation lawyer in Romania can guide you through all actions regarding the process of reorganization and insolvency in Romania, from the opening of the insolvency proceedings in Romania to the recovery of the company or bankruptcy.
Therefore, the reorganization of the company in Romania represents a legal process aimed at restructuring and reorganizing a financially distressed company to avoid bankruptcy and allow the continuation of its activities.
The Romanian Law Firm Pavel Mărgărit and Associates offers high-standard legal services in all practice areas, especially those concerning insolvency proceedings in Romania. Our team demonstrates a complex understanding of the regulations included in the Romanian Law no. 85/2014 on insolvency prevention and insolvency procedures, providing clear and efficient legal solutions to all clients who have sought the services of an insolvency lawyer in Romania.
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