BANKRUPTCY

By courtesy of the National Bank of Romania and of the National Trade Register

The bankruptcy procedure

Beginning with 21 of June 2006 will enter into force Law no. 85/2006 regarding bankruptcy procedure.

Persons submitted to bankruptcy procedure 

• Commercial companies

• Cooperative companies

• Cooperative organizations

• Agricultural companies

• Economical groups of interest

• Any other private legal structure developing economical activities.

The bankruptcy modes

• The general procedure – represents the procedure mode scheduled by law, according to a debtor which fulfils the condition of the law is submitted after an observation period to the judiciary reorganization and bankruptcy procedure, successive or separately.

• The simplified procedure - represents the procedure mode scheduled by law, according to the debtor is submitted directly to the bankruptcy procedure either at the beginning of the insolvency procedure either after an observation period of maximum 60 days ( this is the time interval to analyze all the specific elements ).

 The minimum quantum of debts through which one can demand the beginning of the insolvency procedure is:                   

• 10.000 RON, at the creditor request                                                    

• six medium incomes for employees.

The parts at the procedure

• Creditors – civil or legal person that has a privilege over the debtor property and solicits the registration of this privilege in  the final debts table or in the final hard-set table and can be proved.

• Debtors - civil or legal person whose patrimony is submitted to insolvency.

• Legal courts

• Bankruptcy judge

• Administrator and liquidator

 Official gazette of the insolvency procedure:

•  is published by National Commercial Register, an institution which realizes the publishing of all the subpoenas, convocations, notifications and communications emitted by legal courts,  bankruptcy judge, administrator and liquidator  after the beginning of the insolvency procedure.

The introductive petition:

• The insolvency procedure is initiated on the petition introduced by the debtor and the creditor, also by other legal persons or institutions legally vested.

• The National Market Value Committee can also initiate the petition but only against the submitted entities.

Unwinding of the procedure

• Simplified  procedure »  the beginning of the procedure » appointment of the administrator » observation period » bankruptcy entrance   » plan-stock and sell » founds distribution » closing the procedure » erasure of the debtor from the register in which was recorded.

• General procedure -  

  the beginning of the procedure » appointment of the administrator: »
  Simplified   procedure	Judiciary reorganization (based on a plan or through plan-stock and sell)
  	closing the procedure » relapse of the debtor	bankruptcy   entrance » plan-stock and sell » founds distribution » closing the procedure » erasure of the debtor from the register in which was recorded.

The unwinding of the procedure is reflected also in the register in which the debtor is registrated through mentions made according by law.

For more information: http://www.bnro.ro; http://www.onrc.ro