{"id":109994,"date":"2025-07-16T13:41:57","date_gmt":"2025-07-16T13:41:57","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=109994"},"modified":"2025-08-20T15:11:23","modified_gmt":"2025-08-20T15:11:23","slug":"romania-restructuring-insolvency","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/romania-restructuring-insolvency\/","title":{"rendered":"Romania: Restructuring &amp; Insolvency"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-109994","comparative_guide","type-comparative_guide","status-publish","hentry","guides-restructuring-insolvency","jurisdictions-romania"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">KPMG Legal &#8211; Toncescu &amp; Partners SPRL<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/07\/KPMG-Legal-Logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">KPMG Legal &#8211; Toncescu &amp; Partners SPRL<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/07\/KPMG-Legal-Logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Restructuring &amp; Insolvency laws and regulations applicable in Romania<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What forms of security can be granted over immovable and movable property? What formalities are required and what is the impact if such formalities are not complied with?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romania the legal regime governing security interests is primarily codified in the Civil Code, particularly in Book V, Title XI (Articles 2323\u20132499) and supplemented by sector-specific regulations <a href=\"https:\/\/www.ten-law.org\/knowledge\/security-rights-in-romania\/\">[1]<\/a>.<\/p>\n<p>The securities provided for in Romanian legislation include mortgages (real estate and movable), special privileges, rights of retention, and pledges. These are governed by the Civil Code as follows:<\/p>\n<ul style=\"padding-left: 0\">\n<li>General provisions mortgages: Articles 2343 &#8211; 2376<\/li>\n<li>Real estate mortgages: Articles 2377 \u20132386<\/li>\n<li>Movable mortgages: Articles 2387\u20132419<\/li>\n<li>Pledges: Articles 2480\u20132494<\/li>\n<li>Retention rights: Article 2495<\/li>\n<li>Privileges: Articles 2333\u20132342.<\/li>\n<\/ul>\n<p>These securities must be registered in special registers such as the Land Register (in Romanian \u2018Cartea Funciar\u0103\u2019) for immovable property and the National Registry for Publicity of Movable Assets (in Romanian \u2018Registrul Na\u021bional de Publicitate Mobiliar\u0103\u2019 or \u2018RNPM\u2019) for movable assets. Failure to register may lead to the inopposability of the collateral against third parties.<\/p>\n<p>As a general remark, multiple security interests may be granted over the same asset, but priority is determined by the date of registration. Moreover, notarisation is not required for movable mortgages, but it is mandatory for real estate mortgages.<\/p>\n<p>To conclude, the enforceability and effectiveness of security interests in Romania hinge on strict compliance with formal requirements. Creditors must ensure they have the proper documentation and register on time to preserve their rights and priority. Failure to observe these formalities may result in the loss of enforceability against third parties, undermining the very purpose of security.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What practical issues do secured creditors face in enforcing their security package (e.g. timing issues, requirement for court involvement) in out-of-court and\/or insolvency proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Secured creditors in Romania face several practical challenges when enforcing their security interests, both in out-of-court contexts and during insolvency proceedings. These challenges stem from procedural requirements, judicial involvement, and the effects of insolvency law.<\/p>\n<p>Out-of-court enforcement is limited and conditional.<\/p>\n<p>While Romanian law allows for certain non-judicial enforcement mechanisms, these are limited in scope and often depend on the type of asset and the agreement between the parties (Art. 2438 et seq.).<\/p>\n<p>As a rule, once the insolvency procedure has been opened under Law no. 85\/2014 on insolvency prevention and insolvency proceedings, all judicial, extrajudicial, and individual enforcement measures are stayed. This is set out in Article 75 of Law no. 85\/2014 on insolvency prevention and insolvency proceedings, which states that the opening of insolvency proceedings suspends all enforcement actions against the debtor\u2019s assets.<\/p>\n<p>Secured creditors may initiate or continue enforcement against co-guarantors or personal guarantors of the debtor, as these individuals are not automatically protected by the stay unless they are also subject to insolvency proceedings.<\/p>\n<p>A secured creditor may request that they be granted appropriate protective measures under Article 87 of Law no. 85\/2014 on\u00a0insolvency prevention and insolvency proceedings, if there is a risk of:<\/p>\n<ol style=\"padding-left: 0\" type=\"a\">\n<li>The reduction of the value of the collateral or the existence of a real danger that it will suffer an appreciable reduction in value.<\/li>\n<li>The reduction of the value of the secured part of a lower-ranking debt, because of the accumulation of interest, increases, and penalties of any kind on a secured senior claim.<\/li>\n<\/ol>\n<p>The lack of insurance of the object of the security against the risk of destruction or damage.<\/p>\n<p>While Romanian law offers a structured framework for the enforcement of security interests, practical implementation remains slow, highly formalistic, and heavily reliant on judicial oversight\u2014particularly in cases involving immovable property and insolvency proceedings. In this context, creditors must carefully design their security packages and anticipate procedural complexities to reduce enforcement risks.<\/p>\n<p>Importantly, both enforcement and insolvency mechanisms operate under court supervision from the outset. Debtors and creditors are empowered to contest key elements of the process\u2014such as the enforcement itself, related documents, and in insolvency cases, the preliminary claims table (including their own claims or those of other creditors), along with any other procedural acts issued throughout the proceedings. This ensures a degree of legal transparency and protection but also contributes to procedural delay and complexity, as well as other documents issued during the insolvency proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What restructuring and rescue procedures are available in the jurisdiction, what are the entry requirements and how is a restructuring plan approved and implemented? Does management continue to operate the business and \/ or is the debtor subject to supervision? What roles do the court and other stakeholders play?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romanian law provides for two types of preventive restructuring procedures, a restructuring agreement and the preventive concordat procedure, as defined in Art. 5(1) points 43\u00b9 and 44\u00b9 of Law 85\/2014 on\u00a0insolvency prevention and insolvency proceedings. Insolvency proceedings are generally conducted as general insolvency proceedings or as judicial liquidation, where the assets are realised and the proceeds distributed to creditors. If a restructuring procedure fails, the procedure becomes bankruptcy, as outlined in Art. 145. Management may continue to operate the business during the observation period (Art. 5(1) point 42), under supervision of the judicial administrator. During reorganisation, the debtor is in possession (Art. 141). In bankruptcy, the company ceases all activity except for that necessary for the liquidation of assets (Art. 145(2)).<\/p>\n<p>Restructuring Agreements<\/p>\n<p>The first preventive procedure is the restructuring agreement, a confidential, negotiation-based procedure with minimal judicial involvement. It is designed for debtors not yet in severe financial distress and which do not require suspension of enforcement procedures, as the approval of a restructuring agreement does not automatically suspend enforcement actions (Art. 5(1)-point 43\u00b9).<\/p>\n<p>During this procedure, the debtor retains control of its business and, with creditor agreement, implements the restructuring plan to avoid future insolvency. However, the law provides for a final judicial stage that allows for the confirmation of the agreement and the discharge of debts even against dissenting creditors, provided fair treatment is ensured (Art. 15\u2075\u201315\u2076, Art. 15\u00b9\u00ba\u201315\u00b9\u00b9).<\/p>\n<p>Preventive Concordat<\/p>\n<p>The second restructuring tool is the preventive concordat (Art. 5(1) point 44\u00b9), a more judicially involved procedure that includes the suspension of individual enforcement actions from a certain procedural moment (Art. 17). The procedure is based on a restructuring plan drafted and negotiated after the syndic judge opens the procedure and is responsible for its homologation (Art. 17(c)). The plan may be confirmed even if some creditors oppose it, and compliance with its provisions leads to discharge of debts, under conditions of fair treatment.<\/p>\n<p>The restructuring plan must contain in particular the restructuring measures to be taken, their duration, the reduction and deferral of claims and any new financial support that may be needed.<\/p>\n<p>The restructuring plan needs to be adopted by affected creditors representing at least 50% of the total amount of the affected claims per class present at the restructuring plan hearing and confirmed by court; then it is legally binding and the debtor is relieved of the obligation to pay to the creditors the amount exceeding the quota.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a debtor in restructuring proceedings obtain new financing and are any special priorities afforded to such financing (if available)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, a debtor may obtain new financing. Such financing has a super priority as it is satisfied with priority.<\/p>\n<p>The relevant legal basis is\u00a0Law No. 85\/2014\u00a0on insolvency and insolvency prevention proceedings, as amended in 2022 to align with\u00a0EU Directive 2019\/1023\u00a0on the preventive restructuring framework.<\/p>\n<p>This financing can come from banks, shareholders, or third-party investors, and may include loans, credit lines, or asset-backed facilities. The new financing must be expressly included in the restructuring plan, which is subject to creditor approval and court confirmation. Courts and creditors will scrutinise the economic rationale and repayment capacity of the new financing.\u00a0 Law No. 85\/2014 on insolvency prevention and insolvency proceedings states that new financing granted under a confirmed restructuring plan is protected from avoidance actions (e.g., clawback claims), provided it was granted in good faith and in accordance with the plan.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a restructuring proceeding release claims against non-debtor parties (e.g. guarantees granted by parent entities, claims against directors of the debtor), and, if so, in what circumstances?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romania,\u00a0restructuring proceedings do not automatically release claims against non-debtor parties. Any such release must be\u00a0explicitly negotiated\u00a0and\u00a0consented to\u00a0by the relevant creditors. Directors and guarantors remain\u00a0personally liable\u00a0unless separately discharged through legal or contractual means (Article 235).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do creditors organize themselves in these proceedings? Are advisory fees covered by the debtor and to what extent?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romanian restructuring proceedings, creditors organise themselves through\u00a0structured creditor classes\u00a0and may engage\u00a0advisors\u00a0to represent their interests. The legal framework is governed by\u00a0Law No. 85\/2014 on\u00a0insolvency prevention and insolvency proceedings, which was updated to align with the EU Restructuring Directive (EU) 2019\/1023.<\/p>\n<p>Creditors are grouped into\u00a0classes\u00a0based on the nature and priority of their claims. These classes may include:<\/p>\n<ul style=\"padding-left: 0\">\n<li>Secured creditors<\/li>\n<li>Employees<\/li>\n<li>Public authorities<\/li>\n<li>Unsecured creditors<\/li>\n<li>Subordinated creditors<\/li>\n<\/ul>\n<p>Each class votes separately on the proposed restructuring plan. A plan is approved if it receives the required majority in each class or through a\u00a0cross-class cram-down\u00a0mechanism if certain conditions are met (Art. 15\u2074,\u00a0Art. 15\u2076).<\/p>\n<p>The debtor may cover\u00a0reasonable advisory fees\u00a0incurred by creditors, particularly if:<\/p>\n<ul style=\"padding-left: 0\">\n<li>The fees are\u00a0approved as part of the restructuring plan.<\/li>\n<li>The advisors contribute to the negotiation or implementation of the plan.<\/li>\n<li>The court finds the fees to be\u00a0proportionate and necessary.<\/li>\n<\/ul>\n<p>The court may limit or reject reimbursement if the fees are excessive or not aligned with the restructuring objectives.<\/p>\n<p>Conclusion<\/p>\n<p>No other organization is required other than the establishment of categories of creditors mentioned above. There is no provision for the debtor to cover the creditor&#8217;s counsel fees.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the test for insolvency? Is there any obligation on directors or officers of the debtor to open insolvency proceedings upon the debtor becoming distressed or insolvent? Are there any consequences for failure to do so?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romanian insolvency law imposes a\u00a0strict duty on directors\u00a0to monitor the financial health of the company and to act promptly when insolvency occurs. Failure to file in time can result in\u00a0personal, civil, and criminal liability, making early legal and financial assessment essential (Art. 66\u00a0and\u00a0Art. 169).<\/p>\n<p>A debtor is over-indebted if the following criteria are met: i) The debtor\u2019s liabilities exceed its assets; and ii) a positive going-concern prognosis is not feasible.<\/p>\n<p>In distressed situations, even before the existence of illiquidity or over-indebtedness, the legal representatives of the debtor have to take restructuring measures to avert insolvency. \u00a0Prior to judicial restructuring, out-of-court restructuring steps should be taken when the first signs of a crisis appear.<\/p>\n<p>According to the applicable legal provisions,\u00a0insolvency is\u00a0characterised\u00a0by the insufficiency of available\u00a0funds\u00a0for payment of certain, due\u00a0and payable debts. Such a state is presumed to exist if\u00a0the debtor has debts older than 60 days and higher than RON\u00a050,000 (Art. 5 point 29\u00a0and\u00a0Art. 5 point 72).<\/p>\n<p>A debtor company must file the claim for the opening of an insolvency proceeding within a maximum of 30 days from the occurrence of the state of insolvency (Art. 66(1)).<\/p>\n<p>As such, if the legal representatives of a debtor company fail to submit, in due time, the petition for the opening of insolvency proceedings (exceeding, by more than six months, the above stated term of 30 days) they may be liable for criminal prosecution, in accordance with Art. 240 of the Romanian Criminal Code.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What insolvency proceedings are available in the jurisdiction? Does management continue to operate the business and \/ or is the debtor subject to supervision? What roles do the court and other stakeholders play? How long does the process usually take to complete?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romania, insolvency proceedings are governed by\u00a0Law No. 85\/2014\u00a0on insolvency and insolvency prevention, which provides a comprehensive framework for both\u00a0restructuring\u00a0and\u00a0liquidation. Several insolvency proceedings are available:<\/p>\n<ol style=\"padding-left: 0\" type=\"a\">\n<li>Preventive Proceedings (Pre-Insolvency)\n<ol style=\"padding-left: 5\" type=\"i\">\n<li>Preventive Composition (Concordat Preventiv)<\/li>\n<li>Restructuring Agreement:<\/li>\n<\/ol>\n<\/li>\n<li>Judicial Insolvency Proceedings\n<ol style=\"padding-left: 5\" type=\"i\">\n<li>General Insolvency Procedure: Initiated when a debtor is insolvent (unable to pay debts older than 60 days). It includes two phases:\n<ul style=\"padding-left: 10\">\n<li>Observation Period: The court assesses the debtor\u2019s financial situation (Art. 42, Art. 75).<\/li>\n<li>Reorganisation or Liquidation: Depending on the feasibility of a restructuring plan (Art. 132\u2013141 for reorganisation; Art. 145\u2013149 for liquidation).<\/li>\n<\/ul>\n<\/li>\n<li>Simplified Insolvency: Applies to debtors with no chance of reorganisation (e.g., no assets or business activity). It leads directly to liquidation (Art. 38(2), Art. 47).<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>In terms of management control:<\/p>\n<ul style=\"padding-left: 0\">\n<li>In preventive proceedings, the debtor generally retains control over its business operations, under the supervision of a court-appointed administrator (Art. 5, point 44\u00b9, Art. 43\u00b9).<\/li>\n<li>In judicial insolvency, the court appoints a judicial administrator (for reorganisation) or a liquidator (for bankruptcy), that may take over management entirely or allow the debtor\u2019s management to continue under strict supervision (Art. 45, Art. 73, Art. 92).<\/li>\n<\/ul>\n<p>Preventive proceedings typically last 3\u201312 months, depending on plan complexity and creditor cooperation. Judicial reorganisation can last 1\u20134 years, especially if the plan is contested or complex. Liquidation may take 1\u20135 years, depending on asset recovery, litigation, and creditor claims.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What form of stay or moratorium applies in insolvency proceedings against the continuation of legal proceedings or the enforcement of creditors\u2019 claims? Does that stay or moratorium have extraterritorial effect? In what circumstances may creditors benefit from any exceptions to such stay or moratorium?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romania, the opening of insolvency proceedings triggers a\u00a0comprehensive stay (moratorium)\u00a0on enforcement and legal actions against the debtor. This stay is a core feature of the insolvency framework under\u00a0Law No. 85\/2014\u00a0on\u00a0insolvency prevention and insolvency proceedings and is designed to preserve the debtor\u2019s estate and ensure equitable treatment of creditors (Art. 75).<\/p>\n<p>In other words, once the insolvency proceedings have been initiated, all compulsory enforcement measures and other judicial and extrajudicial measures for the enforcement of claims on the debtor&#8217;s assets are automatically suspended by law (Art. 75 (1)). The moratorium for debts of the insolvency estate that arose during insolvency proceedings and are older than 60 days may be lifted and enforcement can be initiated, provided that certain conditions relating to the claim are met (Art. 75 (4)).<\/p>\n<p>The stay remains in effect throughout the observation and reorganisation phases, and until the closure of the insolvency proceedings (Art. 75, 77).<\/p>\n<p>The stay is not automatically extraterritorial. However, Romania is a party to the EU Insolvency Regulation (Recast) No. 2015\/848, which provides for mutual recognition of insolvency proceedings across EU member states. This means that the stay may be recognised and enforced in other EU jurisdictions, but not outside the EU unless bilateral treaties or comity principles apply.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do the creditors, and more generally any affected parties, proceed in such proceedings? What are the requirements and forms governing the adoption of any reorganisation plan (if any)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romanian insolvency and restructuring proceedings, creditors and other affected parties play a central role in the adoption and implementation of a reorganisation plan.<\/p>\n<p>The participation of creditors in such proceedings involves the following:<\/p>\n<ul style=\"padding-left: 0\">\n<li>Creditors must register their claims by a court-established deadline after the opening of proceedings (Art. 102).<\/li>\n<li>Claims are verified by the judicial administrator and included in the creditor table (in Romanian \u2018lista creditorilor\u2019) (Art. 106,\u00a0Art. 109).<\/li>\n<li>Creditors are grouped into classes based on the nature and priority of their claims: secured, employees, public authorities, unsecured and subordinated.<\/li>\n<\/ul>\n<p>The recent legislative changes have brought a preferential position for certain claims, in that for debts accumulated during insolvency proceedings which are older than 60 days, foreclosure procedures can be started, provided that certain conditions are met in relation to the claim (Art. 75(4)).<\/p>\n<p>A reorganisation plan (in Romanian \u2018plan de reorganizare\u2019) must include a\u00a0detailed restructuring strategy\u00a0(e.g., debt rescheduling, asset sales, operational changes); a\u00a0payment schedule\u00a0for each class of creditors; a\u00a0business viability analysis; identification of\u00a0new financing, if any; a\u00a0timeline\u00a0for implementation (typically up to 3 years, extendable to 4) (Art. 133,\u00a0Art. 134).<\/p>\n<p>The plan must be submitted by the\u00a0debtor, or the\u00a0judicial administrator, or creditors holding at least 20%\u00a0of total claims (Art. 132).<\/p>\n<p>The plan should be approved by a majority in value of claims in each class, and a majority in number of creditors in each class and afterwards confirmed by the syndic judge. The judicial administrator oversees implementation (Art. 58,\u00a0Art. 59).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do creditors and other stakeholders rank on an insolvency of a debtor? Do any stakeholders enjoy particular priority (e.g. employees, pension liabilities, DIP financing)? Could the claims of any class of creditor be subordinated (e.g. recognition of subordination agreement)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romania, the\u00a0ranking of creditors in insolvency proceedings\u00a0is governed by\u00a0Law No. 85\/2014 on\u00a0insolvency prevention and insolvency proceedings, which establishes a\u00a0statutory order of priority\u00a0for the distribution of a debtor\u2019s assets. This ranking determines how creditors and other stakeholders are paid during liquidation or reorganisation (Art. 159,\u00a0Art. 161).<\/p>\n<p>The priority for satisfaction of the claims is the following (Art. 159(1), Art. 161(1), (8), (10)):<\/p>\n<ul style=\"padding-left: 0\">\n<li>Taxes and procedural costs;<\/li>\n<li>Receivables from financing granted during the proceedings, during the preventive insolvency procedures, fees of the insolvency practitioner (&#8220;super priority&#8221;);<\/li>\n<li>Receivables from employment relationships;<\/li>\n<li>Claims resulting from the continuation of the debtor&#8217;s business in insolvency;<\/li>\n<li>Claims of the public sector;<\/li>\n<li>Secured creditors;<\/li>\n<li>Unsecured creditors;<\/li>\n<li>Subordinated creditors (includes shareholders\u2019 loans and other contractually subordinated claims);<\/li>\n<li>Stakeholders (entitled to residual value, if any, after all debts are paid);<\/li>\n<\/ul>\n<p>Secured creditors are generally well-protected but may face delays due to procedural costs and employee\/public claims. Unsecured creditors often recover little unless the debtor has substantial unencumbered assets. Subordinated creditors and shareholders typically recover only in solvent restructurings.<\/p>\n<p>To conclude, Romania\u2019s insolvency regime provides a\u00a0clear and enforceable hierarchy\u00a0of claims, with\u00a0employee and public claims prioritised, and\u00a0secured creditors protected\u00a0through asset-based recoveries.\u00a0Subordination agreements\u00a0are recognised, allowing for flexible creditor arrangements within the statutory framework.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a debtor\u2019s pre-insolvency transactions be challenged? If so, by whom, when and on what grounds? What is the effect of a successful challenge and how are the rights of third parties impacted?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, under Romanian insolvency law,\u00a0pre-insolvency transactions can be challenged\u00a0if they are deemed to have harmed the interests of creditors. This is a key mechanism for preserving the integrity of the debtor\u2019s estate and ensuring equitable treatment of creditors.<\/p>\n<p>Challenges to pre-insolvency transactions are governed by Law No. 85\/2014 on insolvency and insolvency prevention proceedings (Art. 117\u2013122). The right to challenge such transactions lies with: the judicial administrator (in reorganisation), the judicial liquidator (in bankruptcy), or, in some cases, creditors may initiate the challenge if the administrator or liquidator fails to act (Art. 122(5).<\/p>\n<p>Challenges can be brought for transactions concluded up to 2 years\u00a0before the opening of insolvency proceedings for most types of suspect transactions or up to 3 years\u00a0in cases of fraud or transactions with related parties (Art. 117(1)). The look-back period is calculated from the\u00a0date of the court\u2019s decision to open insolvency proceedings.<\/p>\n<p>Transactions may be annulled if they favoured one creditor over others (e.g.,\u00a0preferential payments); or if they were intended to\u00a0hide or transfer assets\u00a0to avoid enforcement; or if they were concluded with\u00a0related parties\u00a0under suspicious circumstances, made in\u00a0bad faith, with knowledge of the debtor\u2019s insolvency or imminent insolvency (Art. 117(2),\u00a0Art. 122(3)).<\/p>\n<p>In terms of effects, if a transaction is successfully challenged, it is declared null and void, the asset or value transferred is restored to the debtor\u2019s estate or the counterparty may be required to return the asset or its value, unless they qualify as a bona fide third party (Art. 122(1)-(2)).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How existing contracts are treated in restructuring and insolvency processes? Are the parties obliged to continue to perform their obligations? Will termination, retention of title and set-off provisions in these contracts remain enforceable? Is there any ability for either party to disclaim the contract?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romania, the treatment of\u00a0existing contracts\u00a0during restructuring and insolvency proceedings is governed by\u00a0Law No. 85\/2014 on\u00a0insolvency prevention and insolvency proceedings. The law provides a structured approach to determining whether contracts continue, can be terminated, or are subject to set-off or retention of title clauses (Art. 123,\u00a0Art. 124).<\/p>\n<p>After the opening of insolvency proceedings, employment contracts may only be terminated by the insolvency administrator, subject to the statutory notice periods (Art. 123(8)).<\/p>\n<p>A debtor&#8217;s current contracts continue to apply; however, the insolvency administrator has the right to terminate certain agreements (Art. 123(1),\u00a0Art. 123(10)).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What conditions apply to the sale of assets \/ the entire business in a restructuring or insolvency process? Does the purchaser acquire the assets \u201cfree and clear\u201d of claims and liabilities? Can security be released without creditor consent? Is credit bidding permitted? Are pre-packaged sales possible?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romania\u2019s insolvency regime allows for the\u00a0sale of assets or businesses under court supervision, with protections for creditors and buyers. While assets can be sold\u00a0free of claims, and security interests released, the process is\u00a0procedurally intensive (Art. 154\u2013158).\u00a0Pre-packaged sales are possible under Romanian law. For transactions to be valid, they must be included in a confirmed reorganization plan, approved by the affected creditors and ratified by the insolvency court, in accordance with the provisions of (Art. 138, Art. 154(2),\u00a0Art. 158(2)). Asset Liquidation and Creditor Rights in Romanian Insolvency Law Assets are sold free of encumbrances, and secured creditors are permitted to request the lifting of suspension and take over assets in lieu of their claims. Generally, asset liquidation procedures reflect the creditors\u2019 vote of opportunity, meaning they are subject to collective decision-making. However, there are exceptional cases where the consent of other creditors is not required to liquidate an asset\u2014for example:<\/p>\n<ul style=\"padding-left: 0\">\n<li>Assignment of assets in lieu of the creditor\u2019s claim;<\/li>\n<li>Lifting of suspension and asset sale, which must be preceded by a court ruling These mechanisms provide secured creditors with specific avenues to recover their claims more efficiently, even within the constraints of judicial oversight.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What duties and liabilities should directors and officers be mindful of when managing a distressed debtor? What are the consequences of breach of duty? Is there any scope for other parties (e.g. director, partner, shareholder, lender) to incur liability for the debts of an insolvent debtor and if so can they be covered by insurances?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romania, directors and officers of a company in financial distress must navigate a complex set of\u00a0duties and liabilities, particularly under\u00a0Law No. 85\/2014 on\u00a0insolvency prevention and insolvency proceedings\u00a0and\u00a0the Company Law (Law no. 31\/1990). These obligations are designed to protect creditors and ensure responsible corporate governance during periods of financial instability.<\/p>\n<p>Directors and officers are expected to act with\u00a0diligence, loyalty, and in the best interest of the company and its stakeholders. When a company becomes distressed or insolvent, their duties change to include:<\/p>\n<ul style=\"padding-left: 0\">\n<li>Monitoring solvency\u00a0and acting promptly if insolvency criteria are met (Art. 66)<\/li>\n<li>Filing for insolvency\u00a0within\u00a030 days\u00a0of the business becoming insolvent (Art. 66(1))<\/li>\n<li>Avoiding preferential or fraudulent transactions\u00a0that harm creditors (Art. 117\u2013122)<\/li>\n<li>Preserving the company\u2019s assets\u00a0and avoiding actions that worsen its financial position (Art. 169)<\/li>\n<li>Cooperating with the judicial administrator or liquidator\u00a0once proceedings begin (Art. 58,\u00a0Art. 64)<\/li>\n<\/ul>\n<p>Failure to comply with these duties can result in\u00a0civil, administrative, and criminal liability.<\/p>\n<p>Romanian law also allows for the\u00a0extension of liability\u00a0to other parties in certain circumstances such as shareholders, partners, lenders or related parties if they exercised de facto control or participated in fraudulent transactions, or even to parent companies (Art. 169\u2013173). Directors and officers can obtain Directors\u2019 and Officers\u2019 (D&amp;O) liability insurance, which may cover legal defence costs, civil damages awarded for breach of duty, as well as certain regulatory fines (subject to policy terms).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do restructuring or insolvency proceedings have the effect of releasing directors and other stakeholders from liability for previous actions and decisions? In which context could the liability of the directors be sought?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romania, restructuring or insolvency proceedings do not automatically release directors or other stakeholders from liability for actions taken prior to the commencement of those proceedings. On the contrary, the law imposes heightened duties and potential liabilities on directors, especially when a company is approaching or enters insolvency.<\/p>\n<p>The 40-day report (in Romanian \u2018raport de cauze\u2019), concluded by the insolvency practitioner, must set out the causes and circumstances that led to the insolvency and contain indications as to the persons who should be held responsible and the conditions of their possible liability (Art. 58(b), Art. 64(a)).<\/p>\n<p>Directors and officers are\u00a0not discharged\u00a0from liability simply because the company enters restructuring or insolvency.<\/p>\n<p>Romanian law (Law No. 85\/2014 on\u00a0insolvency prevention and insolvency proceedings) allows for\u00a0civil and criminal liability\u00a0to be pursued\u00a0during or after\u00a0insolvency proceedings if misconduct is identified (Art. 169\u2013173).<\/p>\n<p>If found liable, directors may face:<\/p>\n<ul style=\"padding-left: 0\">\n<li>Personal liability\u00a0for part or all of the company\u2019s debts (Art. 169(1)<\/li>\n<li>Disqualification\u00a0from managing companies for up to 10 years (Art. 169(2))<\/li>\n<li>Criminal prosecution\u00a0for fraudulent bankruptcy or asset stripping (Art. 169(1)(c),\u00a0Art. 173)<\/li>\n<li>Extension of insolvency effects\u00a0to their personal assets in extreme cases (Art. 170\u2013171)<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Will a local court recognise foreign restructuring or insolvency proceedings over a local debtor? What is the process and test for achieving such recognition? Does recognition depend on the COMI of the debtor and\/or the governing law of the debt to be compromised? Has the UNCITRAL Model Law on Cross Border Insolvency or the UNCITRAL Model Law on Recognition and Enforcement of Insolvency-Related Judgments been adopted or is it under consideration in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romanian courts\u00a0can recognise foreign restructuring or insolvency proceedings\u00a0involving a local debtor, particularly under the framework of\u00a0Regulation (EU) 2015\/848 on insolvency proceedings (EIR Recast). There is also the possibility of opening a secondary insolvency proceeding, limited to the assets located on the territory of Romania. Romania has\u00a0not adopted the UNCITRAL Model Law on Cross-Border Insolvency, but it does apply EU law principles and jurisprudence in cross-border cases (Art. 309\u2013311).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">For EU countries only: Have there been any challenges to the recognition of English proceedings in your jurisdiction following the Brexit implementation date? If yes, please provide details.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While English insolvency and restructuring proceedings can still be recognised in Romania post-Brexit, the process is\u00a0no longer automatic\u00a0and is subject to\u00a0national legal standards. Recognition depends on\u00a0judicial discretion,\u00a0procedural compliance, and\u00a0substantive compatibility\u00a0with Romanian law. The absence of the UNCITRAL Model Law further complicates recognition of UK proceedings (Art. 309\u2013311).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can debtors incorporated elsewhere enter into restructuring or insolvency proceedings in the jurisdiction? What are the eligibility requirements? Are there any restrictions? Which country does your jurisdiction have the most cross-border problems with?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign-incorporated debtors\u00a0can enter\u00a0restructuring or insolvency proceedings in Romania, but this is subject to specific\u00a0eligibility criteria\u00a0and\u00a0jurisdictional requirements\u00a0under\u00a0Law No. 85\/2014\u00a0on\u00a0insolvency prevention and insolvency proceedings as well as relevant EU regulations.<\/p>\n<p>A foreign company may access Romanian restructuring or insolvency proceedings if it has a\u00a0sufficient connection to Romania, typically through:<\/p>\n<ul style=\"padding-left: 0\">\n<li>Its\u00a0Centre of Main Interests (COMI)\u00a0being in Romania (Art. 5(7))<\/li>\n<li>Having a\u00a0branch, subsidiary, or establishment\u00a0in Romania (Art. 5(58))<\/li>\n<li>Having assets or operations\u00a0located in Romania.<\/li>\n<li>Having creditors\u00a0based in Romania.<\/li>\n<\/ul>\n<p>The Romanian courts will assess whether they have\u00a0jurisdiction\u00a0based on these factors, particularly COMI, in line with\u00a0EU Regulation 2015\/848\u00a0on cross-border insolvency.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are groups of companies treated on the restructuring or insolvency of one or more members of that group? Is there scope for cooperation between office holders? For EU countries only: Have there been any changes in the consideration granted to groups of companies following the transposition of Directive 2019\/1023?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Romania, the treatment of\u00a0groups of companies\u00a0in restructuring or insolvency proceedings has evolved, particularly following the\u00a0transposition of Directive (EU) 2019\/1023. While Romanian law still treats each legal entity as\u00a0separate, there is increasing scope for\u00a0coordination and cooperation\u00a0between proceedings involving group members.<\/p>\n<p>Under Romanian law, if at least two companies in a group of companies are insolvent, they may file a joint petition for insolvency with the appropriate court (Art. 185(1)). An individual company of a group, even if only threatened with insolvency, may file a &#8220;joint&#8221; application for the opening of insolvency proceedings with the group in order to avoid the opening of subsequent individual insolvency proceedings against itself (Art. 185(2)).<\/p>\n<p>The court may consolidate hearings or coordinate procedures if multiple group members are subject to proceedings in the same jurisdiction\u00a0(Art. 186).<\/p>\n<p>There is no formal group insolvency regime, but courts and practitioners may cooperate informally to align timelines and strategies (Art. 187\u2013188).<\/p>\n<p>If group members are incorporated in different jurisdictions, coordination is more difficult. Creditors of one group entity may oppose measures that benefit the group as a whole.<\/p>\n<p>There is a lack of binding group-wide plans. Each entity\u2019s creditors must approve its own plan, limiting the scope for unified restructuring.<\/p>\n<p>To conclude, Romania treats group companies as\u00a0separate legal entities\u00a0in insolvency, but recent reforms\u2014especially following Directive 2019\/1023\u2014have improved the\u00a0scope for coordination. While there is no formal group insolvency regime,\u00a0cooperation between office holders\u00a0and\u00a0harmonised restructuring strategies\u00a0are increasingly encouraged.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your country considering adoption of the UNCITRAL Model Law on Enterprise Group Insolvency?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As at the time of writing (2025),\u00a0Romania has not adopted\u00a0the\u00a0UNCITRAL Model Law on Enterprise Group Insolvency (MLEG), nor is there any official indication that its adoption is currently under\u00a0active legislative consideration.<\/p>\n<p>Romania primarily relies on:<\/p>\n<ul style=\"padding-left: 0\">\n<li>Law No. 85\/2014\u00a0on insolvency prevention and insolvency proceedings;<\/li>\n<li>EU Regulation 2015\/848\u00a0on cross-border insolvency (for EU-based group entities);<\/li>\n<\/ul>\n<p>General private international law principles\u00a0for non-EU cases.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any proposed or upcoming changes to the restructuring \/ insolvency regime in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Romania is actively modernising its restructuring and insolvency regime, with recent reforms focusing on\u00a0early intervention and financial transparency.<\/p>\n<p>Romania has recently introduced\u00a0notable changes\u00a0to its restructuring and insolvency regime, and\u00a0further reforms are under consideration\u00a0to enhance financial discipline and align with international best practices.<\/p>\n<ol style=\"padding-left: 0\">\n<li>Recent Legislative Changes: Law no. 3\/2025 on Measures to Prevent Payment Default. This initiative adopted in 2025 strengthens the\u00a0preventive framework\u00a0for insolvency by imposing stricter financial reporting obligations on companies.<\/li>\n<li>Ongoing Alignment with EU Directives<br \/>\nRomania continues to align its restructuring framework with Directive (EU) 2019\/1023 on preventive restructuring frameworks. This includes strengthening debtor-in-possession models, enhancing cross-class cram-down mechanisms, improving access to new financing during restructuring, as well as protecting restructuring-related transactions from avoidance actions.<\/li>\n<li>No Current Adoption of UNCITRAL Model Laws<\/li>\n<li>Potential future reforms may include digitalisation of insolvency procedures, specialised insolvency courts or chambers, enhanced creditor protection in group restructurings, as well as greater harmonisation with international insolvency standards.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your jurisdiction debtor or creditor friendly and was it always the case?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In my opinion, Romania\u2019s insolvency and restructuring regime has historically been\u00a0debtor-friendly, but in recent years it has evolved toward a\u00a0more balanced framework\u00a0that increasingly protects\u00a0creditor rights, particularly in response to EU harmonisation efforts and financial sector reforms.<\/p>\n<p>Historically, Romanian insolvency law\u2014especially prior to the 2014 overhaul\u2014was seen as\u00a0protective of debtors providing for lengthy procedures that allowed debtors to delay enforcement, limited creditor control over restructuring plans, weak enforcement mechanisms for secured creditors and a tendency for debtors to use insolvency as a shield against creditors, rather than a genuine restructuring tool.<\/p>\n<p>With the adoption of\u00a0Law No. 85\/2014\u00a0on\u00a0insolvency prevention and insolvency proceedings and subsequent amendments, Romania has moved toward a\u00a0more creditor-conscious model, including:<\/p>\n<ul style=\"padding-left: 0\">\n<li>Stronger voting rights\u00a0for creditors in restructuring plans.<\/li>\n<li>Cross-class cram-down mechanisms\u00a0aligned with EU Directive 2019\/1023.<\/li>\n<li>Enhanced transparency\u00a0and reporting obligations for distressed companies.<\/li>\n<li>Court oversight\u00a0to prevent abuse of restructuring tools<\/li>\n<\/ul>\n<p>The 2025 enactment of\u00a0Law No. 3\/2025\u00a0further supports this shift by introducing\u00a0early warning systems\u00a0and\u00a0mandatory financial disclosures, aimed at preventing strategic misuse of insolvency proceedings.<\/p>\n<p>To conclude, Romania has transitioned from a\u00a0debtor-friendly\u00a0to a\u00a0more creditor-balanced\u00a0insolvency regime. While debtors still benefit from tools like preventive concordats and restructuring agreements,\u00a0creditors now have stronger procedural and substantive rights, making the system more robust and aligned with international standards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do sociopolitical factors give additional influence to certain stakeholders in restructurings or insolvencies in the jurisdiction (e.g. pressure around employees or pensions)? What role does the State play in relation to a distressed business (e.g. availability of state support)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes,\u00a0sociopolitical factors do influence restructuring and insolvency proceedings in Romania, particularly in relation to\u00a0employees, pensions, and state-owned enterprises. The\u00a0state plays an active role, both as a regulator and, in some cases, as a creditor or indirect stakeholder.<\/p>\n<p>For instance, the influence of employees and pensions is very strong because they are\u00a0politically sensitive constituencies, and their interests often receive\u00a0preferential treatment\u00a0in insolvency and restructuring contexts. Employee claims\u00a0(e.g. unpaid wages, or severance pay) are treated as\u00a0priority claims\u00a0under Law No. 85\/2014 on\u00a0insolvency prevention and insolvency proceedings. Furthermore, pension obligations, especially in state-owned or formerly state-owned enterprises, are closely monitored by public authorities.<\/p>\n<p>The Romanian state plays several roles in insolvency and restructuring:<\/p>\n<ol style=\"padding-left: 0\" type=\"a\">\n<li>As a creditor, through agencies like\u00a0ANAF (the National Tax Authority)\u00a0and\u00a0CNPP (the National Pension authority), the state is often a\u00a0major creditor\u00a0in insolvency proceedings. Tax and social security debts are\u00a0prioritised\u00a0and closely monitored.<\/li>\n<li>As a regulator, the state enforces\u00a0strict reporting and compliance obligations, especially under the 2025 anti-insolvency reforms. It has introduced\u00a0early warning systems\u00a0and\u00a0mandatory financial disclosures\u00a0to detect distress earlier.<\/li>\n<li>As a support provider, as it may offer payment deferrals\u00a0for taxes or social contributions, access to EU-backed restructuring funds, or temporary subsidies\u00a0for strategic sectors (e.g., energy, transport).<\/li>\n<\/ol>\n<p>However, such support is often\u00a0conditional\u00a0on compliance with fiscal rules and restructuring commitments.<\/p>\n<p>To conclude, Romania\u2019s insolvency and restructuring landscape is shaped not only by legal and financial considerations but also by sociopolitical dynamics, especially where employees, pensions, or state interests are involved. The state plays a multifaceted role, balancing fiscal discipline with social stability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the greatest barriers to efficient and effective restructurings and insolvencies in the jurisdiction? Are there any proposals for reform to counter any such barriers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Romanian restructuring and insolvency framework has undergone significant modernisation, but several\u00a0barriers still hinder efficient and effective outcomes. These challenges are both\u00a0structural and procedural, and the government has acknowledged the need for further reform.<\/p>\n<p>Legal and Procedural Challenges<\/p>\n<ul style=\"padding-left: 0\">\n<li>Complexity of Law No. 85\/2014 on\u00a0insolvency prevention and insolvency proceedings: While this law provides a comprehensive framework, its application can be cumbersome due to procedural rigidity and inconsistent interpretation by courts.<\/li>\n<li>Lengthy Court Proceedings: Judicial reorganisation and bankruptcy cases often face delays due to overloaded courts and procedural bottlenecks.<\/li>\n<li>Limited Use of Preventive Tools: Mechanisms like preventive composition (in Romanian \u2018concordat preventiv<em>\u2019<\/em>) are underused, partly due to lack of awareness and creditor scepticism.<\/li>\n<\/ul>\n<p>Financial and Market Constraints<\/p>\n<ul style=\"padding-left: 0\">\n<li>Low Recovery Rates: Creditors often recover only a small portion of their claims, which discourages proactive engagement in restructuring efforts.<\/li>\n<li>Limited Access to Financing: Companies in distress struggle to secure bridge financing or debtor-in-possession (DIP) funding, which is crucial for successful reorganisation.<\/li>\n<\/ul>\n<p>Cultural and Behavioural Factors<\/p>\n<ul style=\"padding-left: 0\">\n<li>Stigma Around Insolvency: There is still a cultural reluctance to initiate insolvency proceedings, often seen as a failure rather than a restructuring opportunity.<\/li>\n<li>Reluctance to Negotiate: Creditors may prefer liquidation over restructuring due to mistrust or lack of incentives to support turnaround plans.<\/li>\n<\/ul>\n<p>To conclude, Romania\u2019s restructuring and insolvency regime is evolving, but still faces\u00a0barriers related to procedural inefficiency, governance weaknesses, and misuse of legal tools. The government has launched a\u00a0multi-pronged reform agenda\u00a0to address these issues, with a focus on\u00a0transparency, early intervention, and creditor protection.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">6262<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/109994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=109994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}