[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN ROMANIA] 85
are suspended. The penalties, interest and other expenses related to the debt will be suspended according to the provisions of the restructuring plan. As a general rule, for the entire duration of such procedure, an insolvency procedure cannot be started against the debtor. However, for procedures started before July 17, 2022, if the debtor requests an extension of the preventive agreement, the creditors who have voted against the prolongation of the preventive agreement, or the creditors who are not part of the preventive agreement procedure, have the right to submit a request for initiation of an insolvency procedure against the debtor. Moreover, the creditors who voted against the afore-mentioned extension have the right to start enforcement procedures against the debtor. Insolvency procedure If the insolvency procedure (regardless of the form) is initiated, all the judicial and/or extrajudicial claims, as well as all enforcement procedures against the debtor are suspended. Moreover, creditors cannot start any new such claims or procedures. Another protection granted to the debtor refers to the suspension of the penalties, interest and other expenses related to the debt. ii) What is the extent of the protection? (e.g., it includes all of the debtor’s assets; is it limited to several assets for which the debtor may ask for protection? Is it at the court’s discretion to
be prolonged to 12 months – since the commencement of the preventive agreement, until the homologation of the restructuring plan. After the homologation of the restructuring plan, the enforcement procedures regarding the affected claims against the debtor will be suspended. The suspension includes all the debtor’s assets that are being enforced at the date of the
preventive agreement. Insolvency procedure
If the insolvency procedure (regardless of the form) is initiated, all the judicial and/or extrajudicial claims, as well as all enforcement procedures against the debtor are suspended. Moreover, creditors cannot start any new such claims or procedures. The suspension includes all the debtor’s assets that are being enforced and all the judicial/extrajudicial claims filed against the debtor. In respect to the suspension of the penalties, interest and other expenses related to the debt, from the moment the insolvency procedure is started and until it is finalized, no such expenses are incurred by the debtor. iii) By whom it is granted? (e.g., by a court decision or by injunctions or directly by the law, etc.) Preventive agreement The suspension is granted de iure and is only mentioned in the decision. Insolvency procedure The suspension is granted de iure and it is not necessary to be mentioned in any court decision. iv) Does the protection include only the debtor, or may it cover other persons as well (e.g., guarantors)?
include any asset? Etc.) Preventive agreement
All the enforcement procedures started before the preventive agreement shall be suspended by law, together with the enforceable titles obtained after the start of the preventive agreement, for a period of 4 months – which can
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
Made with FlippingBook Online newsletter maker