Reorganisation, A Double Challenge For Romanian Companies

Since the enactment of the new insolvency law in 2006, its proceedings have been amended many times to improve and simplify bankruptcy. In the past few years, the economic downturn has caused more and more companies to request court protection with the hope of undergoing reorganisation, realising that insolvency need not be the death of the company but, rather, a second chance. Further, with the insolvency practice picking up, an increasingly number of debtor companies realise the tools provided by reorganisation, such as the chance to erase some or even all of their debts, generally towards unsecured creditors.

Our legislators' constant attention to bankruptcy proceedings has resulted in inconsistencies in respect of reorganisation that have never been fully settled. So, on top of the fact that reorganisation is usually a challenging procedure, participants are also faced with a second challenge – finding practical solutions in cases where the law does not