Restructuring and Insolvency Proceedings

Under Romanian insolvency law, a creditor holding a claim which is certain, liquid and due and payable for more than 60 days may petition the competent court for the opening of insolvency proceedings against the debtor, provided that, after setting off any mutual debts, the outstanding claim exceeds the statutory threshold of RON 50,000.A claim is considered certain where its existence results from the instrument evidencing the claim itself or from other documents issued by or acknowledged by the debtor. Depending on the circumstances, this may be established through contractual documentation, accepted invoices, acknowledgements of debt, correspondence, delivery documents or other supporting evidence.Where insolvency proceedings have already been opened against the debtor, creditors holding claims arising before the opening date must, as a rule, file an application for admission of their claims within the deadline established by the syndic judge in the opening judgment. This deadline may not normally exceed 45 days from the opening of proceedings, although the court may extend it in the circumstances expressly provided by law.The judicial administrator must notify the creditors identified in the debtor’s records of the opening of proceedings and of the applicable filing deadlines. A creditor who has not been duly notified in accordance with the statutory notification procedure is deemed to remain within the deadline upon filing its claim and enters the proceedings at the stage reached at that time.

Continuing or commencing a commercial relationship with a company undergoing insolvency proceedings requires particular attention to the legal status and recoverability of claims arising after the opening of proceedings.Claims arising during the observation period or judicial reorganisation are generally treated as current claims and are payable in accordance with the documents from which they arise, without having to be registered in the creditors’ claims table.Where such a claim remains unpaid, the creditor may submit a formal payment request to the judicial administrator. The request must be assessed within 15 days of receipt. The judicial administrator’s decision, or failure to act where legally relevant, may be challenged before the syndic judge under the procedure applicable to challenges against the administrator’s measures.Subject to the statutory conditions, a creditor holding a recognised current claim exceeding the applicable threshold may ultimately seek the debtor’s entry into bankruptcy where the claim remains unpaid for the period prescribed by law. Different rules apply once the debtor has entered bankruptcy, including the statutory ranking applicable to distributions from the debtor’s estate.I can assist with assessing the legal status and recoverability of current claims, reviewing the risks associated with entering into or continuing a commercial relationship with an insolvent debtor, preparing and submitting payment requests, monitoring the insolvency practitioner’s reports and publications, challenging adverse or omitted measures where appropriate, and assessing the further remedies available where payment is not made.

I can provide comprehensive representation and assistance to creditors throughout insolvency and bankruptcy proceedings involving Romanian debtors.This includes assessing the recoverability and ranking of claims; preparing petitions for the opening of insolvency proceedings; assisting with the selection and proposal of an insolvency practitioner; preparing and filing applications for admission of claims; reviewing and challenging the preliminary claims table where necessary; and continuously monitoring the proceedings and relevant Insolvency Proceedings Bulletin publications.Support can also extend to advising on the exercise of voting rights, creditors’ meeting agendas, proposed reorganisation plans and asset-sale strategies; coordinating positions with other creditors where their interests are aligned; challenging measures adopted by the judicial administrator or liquidator where appropriate; and pursuing procedural measures aimed at preserving the debtor’s estate and maximising the prospects of recovery.