English
If a debtor is unable to overcome its financial difficulties and enters insolvency, the legislation allows them to enter judicial reorganization to allow them to continue their business operations. The procedure is far more known and applied in practice, according to Mr. Ionel Tudor, lawyer at Finconta Consulting SPRL.
He says that in this particular context, what the lawmakers sought to achieve was to facilitate the survival of debtors that have been declared insolvent, to allow them to continue their existence as a company, restructuring their activity based on a cohesive reorganization plan.
The Finconta representative says that the reorganization plan will indicate the chances of a turnaround subject to the possibilities and the nature of the debtors' line of business, with the available financial means and with the market demand compared to the debtors' offer.
"The plan may stipulate either the restructuring and the continuation of the debtors' activity, or the liquidation of some its assets, or a combination of the two reorganization options", according to Mr. Tudor, who stresses that a reorganization plan will necessarily comprise the following: the outlook of a recovery; the payment schedule; the categories of disadvantaged creditors; the treatment of the categories of disadvantaged creditors; what kind of compensations will be granted to the titleholders of every category of claims, compared to the estimated amounts they would receive in the event of a default (the estimated value will be calculated based on an evaluation report, drawn up by a certified evaluator); the manner of payment of the current receivables.
According to Mr. Ionel Tudor, the duration of the reorganization plan stipulated in the insolvency code is three years, with an option for extension of one more year.
The representative of law firm Finconta Consulting also mentions the fact that existing norms provide financially distressed debtors with two procedures for preventing insolvencies, specifically: the ad-hoc mandate and the arrangement with the creditors. Mr. Tudor says that the ad-hoc mandate is a non-litigious confidential procedure, started at the request of the debtor, which allows an ad-hoc authorized agent, designated by the court, to negotiate with creditors in order to achieve agreements between one or more of them and the debtor, in order to help the latter overcome the difficulties he is going through.
The legal delay in which the ad-hoc authorized agent may achieve the agreement between the debtor and their creditors is 90 days.
The arrangement with creditors is an agreement between the financially distressed debtor and the creditors that hold at least 75% of the amount of the accepted and undisputed receivables, certified by the syndic (bankruptcy judge), a contract by which the debtor proposes a turnaround plan and for the repayment of these receivables, and creditors accept supporting the debtor in overcoming his issues, says Ionel Tudor, who said that the maximum delay for the arrangement with the creditors is 24 months, which may be supplemented by 12 more months.
Euro
Dolar SUA
Franc elveţian
Liră sterlină
Gram de aur
