Any company in Romania is established to carry out economic activity in Romania, but when it fails to meet its commercial commitments, certain legal procedures may intervene aimed at the recovery of economic activity in Romania or the immediate liquidation of the company in Romania,when it is confirmed that there is no chance of reorganization. The Romanian Law no. 85/2014 on insolvency prevention and insolvency proceedings provides for 2 procedures that characterize the difficult financial situation of the company in Romania. First of all, there may be an opening of the company insolvency process in Romania or the procedure for filing bankruptcy in Romania. Pavel, Mărgărit and Associates Romanian Law Firm recommends contacting a lawyer specialized in commercial law and the procedure for filing for bankruptcy in Romania that can guide you regarding the steps to be followed for the liquidation of the assets of the company in Romania.
According to the Romanian Law no. 85/2014 on insolvency prevention and insolvency proceedings in Romania, bankruptcy proceedings in Romania represent a simplified process in Romania, which may occur if the debtor has stated his intention to enter the simplified process in Romania, the debtor did not declare his intention to reorganize in Romania or nobody proposed a reorganization plan in Romania, etc.
The effect of the bankruptcy proceedings in Romania is the liquidation of the company’s assets in Romania in order to pay the insolvency creditors, and subsequently the company in Romania will be deregistered.
A lawyer specialized in commercial law and the procedure for filing for bankruptcy in Romania can offer you guidance if it is found necessary to start the company’s insolvency process in Romania or to start the bankruptcy proceedings in Romania.
As a measure prior to the liquidation of the company in Romania, shops, warehouses, offices, commercial correspondence, contracts or any other goods from the company’s patrimony in Romania will be sealed, except for items that need to be checked urgently to avoid legal damages in Romania, accounting records, bills of exchange, etc. The liquidation of the company in Romania of the assets will be carried out by the judicial liquidator under the control of the syndic judge. In order to maximize the value of the company’s assets in Romania, the judicial liquidator will take all the steps of exposure on the market.
The goods may be distributed to the insolvency creditors on account of the claims they hold against the debtor’s property, following a proposal from the creditor, with his obligation to pay all amounts that would have been due to creditors on priority orders. If the claims were completely covered by the distributions made, the syndic judge will issue a sentence for closing the bankruptcy proceeding in Romania and for proceeding with the deregistration of the company in Romania.
„Pavel, Mărgărit and Associates Romanian Law Firm has extensive experience in commercial and corporate law, and the lawyers are specialized in procedure of insolvency of company in Romania and in the procedure for filing for bankruptcy in Romania”, affirmed the Managing Partner of Pavel, Margarit and Associates Romanian Law Firm, Radu Pavel.
In conclusion, if a company in Romania encounters difficulties in fulfilling its obligations towards creditors, the Romanian Law no. 85/2014 on insolvency prevention and insolvency proceedings establishes that a company in Romania may request the company insolvency process in Romania, in which case there is a possibility of economic recovery, but it can also opt for the simplified process in Romania, respectively bankruptcy proceedings in Romania.
You can contact one of our lawyers specialized in commercial law and the procedure for filing for bankruptcy in Romania by filling in the contact form on the website of the Pavel, Margarit and Associates Romanian Law Firm https://www.avocatpavel.com/