Restructuring and insolvency—Romania—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—Romania—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—Romania—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in Romania published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: CITR SPRL—Cristina Ienciu-Dragoș; Alina Popa

1. What main legislation is applicable to insolvencies and reorganisations?

The main legislation applicable to insolvencies and reorganisations is Law No. 85/2014 (professional debts, also pre-insolvency procedures, ad-hoc mandate and preventive concordat) and Law No. 151/2015 (domestic debts).

2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?

The entities that are excluded are those that exercise liberal professions, units and institutions of pre-university and university education, and entities provided in article 7 of Government Ordinance No. 57/2002 on scientific research and technological development. There is no legislation regarding their insolvency proceedings.

Only in the case of insolvency proceedings regarding domestic debts are there excluded assets (untraceable income and non-traceable assets).

Untraceable income

Untraceable income represents the share of the total income of the debtor necessary to cover the expenses to ensure a reasonable standard of living. This includes the amounts necessary to:

  1. to ensure the housing, food, transport, health and other current needs of the debtor and the persons to whom he or she provides maintenance on a regular basis;

  2. for the debtor

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