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Analysis: Almost 60,000 companies will be under the sign of restructuring în Romania
Almost 60,000 Romanians companies will be under the sign of restructuring this year ( and insolvency,bankruptcy, activity suspension) due to the drop in support offered by the state and the difficult access to the lines of banking financing, shows an analysis of Sierra Quadrant, company for the restructuring of the business which estimates that it is not impossible to reach a level of insolvencies similar to that registered ten years ago.
‘2021 started, unfortunately, with new restrictions and issues due to the pandemics. Complete sectors in the economy are still blocked due to the drop in sales and the issues with supplies (Dacia case)’ Sierra Quadrant says.
In 2020, due to the pandemics, the companies got more debts, they rolled down their debts. Many of them tried to reinvent themselves, but the crisis crashed many domains of activity, as well as the traditional trade, HoReCa, event indutry, etc.
The drop in the number of files for insolvency, in 2020 with 12.72% against the previous year, from 6.524 in 2019 to 5.694 in 2020 must be placed, on the existence of facilities offered by the government and the blockage of the activity of tribunals.
‘Our experience of 24 years in the sector of reorganisation of the companies show us that,unfortunately, for many companies the moratorium regarding the postponement of taxes and the suspension of the payment of bills and the leasing, besides the infusion of liquidity associated with the salary expenses made it worse for them instead of better. They saved work places, they offered a necessary social help to the employees, but from the perspective of economic mechanisms, they worsened the chances for recovery of the companies, rolling down and increasing debts’ Ovidiu Neacsu, associate coordinator Sierra Quadrant said.
In 2020,the pandemics affected mainly the small and medium entreprises, weakly capitalised and poorly managed. Most of them were confronted with serious issues with cash-flow due to the financial blockage and the impossibility to access banking loans, four out of five SMEs were non-bankable.
Even if the number of insolvency files was small, the economic impact increased significantly.
The turnover of the companies which started insolvency last year reached one billion euro, with 25% more than in 2019 and the value of the assets is worth 1.6 billion euro,over 30% higher than in 2019.Last year, most insolvencies were in HoReCa, industry, retail, energy, auto, in Bucharest, Brasov, Cluj, Constanta, Iasi, Timisoara.
In 2021, Sierra Quadrant estimates that, besides these domains, there will be affected by insolvency the associated domains, from air transport to agriculture,auto(parts and subunits) and tourism.
On 31st March the deadline for which the companies will be able to access the procedures for forbearance or fiscal amnesty of the debts to the state. ‘ It will be a significant moment as we will see how many of the companies assume a restructuring plan for their business, otherwise,how many are willing to continue their business in 2021’ the Sierra Quadrant analysts say.
Besides the debts to the state, the employers/shareholders will have to take a decision, until 15th March and as it regards the suspension of installments and leasing, especially as they accumulated interest in 2020.
In the 23 years of activity, Sierra Quadrant has become one of the most important companies of profile in Romania, being specialised in administration and liquidation with , high degree of difficulty, characterised by big patrimony and diversified one, by the multitude of legal problems which must be solved, at the same time with the insolvency: environment sheet,dangerous substaces in ownership, trials connected to the patrimony,etc.
Among the significant files managed at present by Sierra Quadrant is Electrocentrale Bucuresti (ELCEN), CET SA Bacau, Letea SA Bacau, Servicii Energetice Moldova SA, Donau Chem, Compania de Navigatie Fluviala Giurgiu NAV, Teleferic SA, Rombet SA and GA-Pro-Chemicals.