{"id":53322,"date":"2025-11-21T17:58:17","date_gmt":"2025-11-21T17:58:17","guid":{"rendered":"https:\/\/my.legal500.com\/developments\/?post_type=legal_developments&p=53322"},"modified":"2025-11-21T17:58:17","modified_gmt":"2025-11-21T17:58:17","slug":"arrangement-with-creditors-in-romania","status":"publish","type":"legal_developments","link":"https:\/\/my.legal500.com\/developments\/thought-leadership\/arrangement-with-creditors-in-romania\/","title":{"rendered":"Arrangement with creditors in Romania"},"content":{"rendered":"

Useful restructuring mechanism for entrepreneurs and their creditors<\/u><\/strong><\/p>\n

The\u00a0preventive concordat (preventive composition) in Romania is the judicial procedure for preventing insolvency regulated by Law no. 85\/2014 on preventing insolvency and insolvency proceedings, whose opening suspends enforcement proceedings under the law, while the debtor can restructure its business\u00a0in Romania\u00a0and pay all or part of the affected claims based on a restructuring plan voted by the creditors whose claims are affected and approved by the insolvency judge.\u00a0<\/strong><\/p>\n

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The Romanian Law Firm Pavel M\u0103rg\u0103rit and Associates\u00a0provides legal assistance in the preventive restructuring proceedings procedure, including representation before the insolvency judge, as well as in relations with creditors to obtain favourable votes. Our team of\u00a0lawyers\u00a0specialized in restructuring and insolvency fields supports both companies facing financial difficulties and creditors interested in protecting their interests within this procedure.<\/p>\n

Insolvency lawyer in Romania. Who can benefit from the concordat in Romania?<\/u><\/p>\n

Any enterprise facing difficulties but not yet insolvent. Difficulty represents a temporary state caused by any circumstance that generates a real and serious threat to the debtor\u2019s future capacity to pay debts at maturity if no adequate measures are taken. The debtor in difficulty is able to fulfil obligations as they become due. An\u00a0insolvency lawyer in Romania<\/a>\u00a0and a\u00a0litigation lawyer in Romania<\/a>\u00a0can provide essential assistance in identifying the appropriate legal solutions to restructure the business, avoid\u00a0opening of insolvency proceedings in Romania\u00a0and protect company assets. They analyse the financial situation in detail, propose efficient restructuring measures and reorganization in Romania, and prepare the necessary documentation to initiate the preventive concordat proceeding\u00a0in Romania.<\/p>\n

Litigation lawyer in Romania. Advantages of the preventive in Romania over insolvency procedure in Romania<\/u><\/p>\n

The preventive concordat proceeding allows the entrepreneurs to maintain control over the business and propose a restructuring plan adapted to their needs, avoiding the rigid solutions typical of\u00a0insolvency procedure in Romania. This procedure is viewed more favourably, helping preserve reputation with clients and partners. There is flexibility in negotiating debts and the possibility of obtaining better conditions than in insolvency. Costs are generally lower, and the company can become more attractive to investors. The debtor chooses the concordat administrator, benefits from automatic suspension of enforcement and penalties, and creditors cannot request insolvency or change essential contracts to the debtor\u2019s detriment. Interim financing is possible, and the entrepreneur can negotiate individually or collectively with creditors, choosing which claims are affected by the restructuring. The plan is voted only by creditors whose claims are affected.<\/p>\n

Insolvency lawyer in Romania. Benefits for creditors of the entrepreneur related to the preventive concordat proceeding.<\/u><\/p>\n

Creditors benefit from multiple guarantees and rights during the preventive concordat, including the ability to initiate the proceeding, vote by correspondence and recover claims more efficiently, especially creditors without preferential rights. Contractual relationships are not definitively affected; interest and penalties are temporarily suspended. The administrator\u2019s fee is covered by the debtor\u2019s funds, not the creditors\u2019. The approved restructuring plan does not affect unaffected creditors, who retain the right to initiate enforcement proceedings if debts remain unpaid. Affected creditors receive quarterly reports from the\u00a0judicial administrator in Romania. Creditors providing new or interim financing are protected from civil, administrative, or criminal liability solely for their involvement. Creditors exercise their rights collectively by voting at creditor meetings.<\/p>\n

\u201cThe preventive concordat proceeding represents a balanced solution for companies in difficulty, offering a real chance to recover without losing control over the business. It is an effective alternative to\u00a0insolvency proceedings in Romania\u00a0for both debtors and creditors,\u201d said\u00a0Senior Associate Lawyer Dr. Nicoleta Mirela N\u0103stasie<\/a>\u00a0from\u00a0The Romanian Law Firm Pavel, M\u0103rg\u0103rit and Associates.<\/p>\n

\u201cThrough the preventive concordat\u00a0\u00a0in Romania<\/a>, companies can preserve their reputation and negotiate viable restructuring terms directly, while creditors benefit from transparency and predictability in debt recovery,\u201d said\u00a0Dr. Radu Pavel<\/a>, Managing Partner of\u00a0The Romanian Law Firm Pavel, M\u0103rg\u0103rit and Associates.<\/p>\n

The Romanian Law Firm Pavel, M\u0103rg\u0103rit and Associates\u00a0provides complete legal assistance in restructuring and\u00a0insolvency proceedings in Romania, offering consultancy and representation before competent authorities for pre-insolvency and\u00a0insolvency proceedings, reorganisation, bankruptcy and liquidation proceedings in Romania<\/a>,. Do not hesitate to contact us via the form on our website:\u00a0https:\/\/avocatpavel.com\/contact\/<\/a>.<\/p>\n

Don\u2019t navigate these challenges alone. Contact Us today for expert assistance tailored to your needs.<\/p>\n

Contact Us<\/a><\/p>\n

In conclusion, the preventive concordat proceeding\u00a0in Romania\u00a0is a valuable opportunity for enterprises in difficulty, allowing them to avoid\u00a0insolvency proceedings in Romania\u00a0and continue operations under regulated and controlled conditions. This legal solution preserves the entrepreneur\u2019s control, protects the business\u2019s reputation, and encourages direct, transparent negotiations with creditors within a secure legal framework. With the support of an\u00a0insolvency lawyer in Romania\u00a0and a\u00a0litigation lawyer in Romania<\/a>, companies can access this mechanism efficiently, ensuring financial recovery, long-term stability and avoiding\u00a0insolvency procedures in Romania.<\/a><\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-53322","legal_developments","type-legal_developments","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments\/53322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments"}],"about":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/types\/legal_developments"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/media?parent=53322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}