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New rules for insolvency will be applied starting with 25 October, including for the procedures undeway
The new regulations regarding insolvency were published in the Official Gazette, but they are valid starting with 25 October and will be applied including for the procedures underway, with the exception of the provisions regarding the insolvency of the group of societies, where they will be applied only to those files lodged after this date.
The insolvency of the debitor – it represents the insufficiency of funds for the payment of debts, liquid and demandable – they are prezuumed when the debitor did not pay his debt to the creditor within 60 days since maturity, not 90 days as in the present moment. At the same time, the article mentioning the fact that insolvency is imminent when they prove the debitor could not pay on time the committed, demandable debts with the available money funds at the day of the maturity.
In order to lodge a request for opening of the insolvency procedure there is a value to be introduced – threshold for the debitor as well, the same as for the creditor, 40,000 lei respectively.The plan for reorganisation will be proposed by the debitor, with the approval of the AGM if the procedure was started by the latter, by the judicial administrator or by one or several creditors owning together at least 20% of the total value of the debs. No plan of reorganisation can be proposed by that debitor who has already used the insolvency procedure over the last five years.
The execution of thed reorganisation plan is proposed to be made for a period of one year, with the possibility by 12 months, not over two years.The plan is considered to be approved if the owners of at least 50% of the total value l of debts approve it.
The people who were responsible for the insolvency of a company are obliged to cover partially or fully out of their wealth, the debts of the respective company and will not have the right to have the position of administrator to any other company for a period of 10 years since the definite legal decision.
The bankruptcy judges will be able to release some situations when the creditors are not active in the procedure. Thus, if no decision can be taken in the meeting of the committee of the creditors, the judicial administrator or the liquidator can notify the tribunal with a view to taking a decision, as the obligation of the bankruptcy judge is to pronounce on the sustainability of the reorganisation plan, proposed by the debitor or the creditors and approved by the creditors’ meeting.
The creditor who owns more than 50% of the total value of the debts can decide, without the consultation of the creditors’ meeting, the designation of a judicial administrator or liquidator to replace the provisional one.