A New Insolvency Act

The Moldovan Parliament adopted a new insolvency law on 29 June 2012. The In-solvency Act No. 149 (Act No. 149), which will enter into force on 14 March 2013, is evolutionary rather than revolutionary, as its main goal appears to be the optimization of the existing insolvency procedures.

Following the new act's entry into force, insolvency cases shall fall under the competence of the court of appeal where the seat of the debtor is located. Also each such court of appeal shall hold a public register of insolvency cases.

Timing

The main issue of the insolvency procedures under the former insolvency legislation was their duration. In certain cases, such procedures could have lasted up to 15 years, thus inevitably causing higher costs and lower recovery rates (RO rata de recuperare) for creditors.