ROMANIA Law and Practice Contributed by: Stan Tîrnoveanu, Alexandru Iorgulescu, Laura Retegan and Viorica Clima, Zamfirescu Racoți Vasile & Partners Attorneys At Law
ing from liquidation. See details in 2.2 Priority Claims in Restructuring and Insolvency Proceedings . Secured claims Secured creditors that have established guarantees over the debtor’s assets have right of preference and of priority to the satisfaction of their receivables from the amounts obtained as a result of the sale of the assets. At the same time, they may also calculate interest from the date of opening of the procedure, if the value of the asset affected by the guarantee allows it. Another specific right of the secured creditors is the possibil - ity of individual enforcement of the assets covered by their guarantee, in certain conditions provided by the law – especially when an asset is not essential for a In contrast to the secured creditors, the unsecured creditors are unable to calculate accessories after the insolvency procedure is opened. Amounts will be distributed pro rata to the unsecured creditors only after full compensation of the credi - tors in the superior category according to the order expressly provided by law, namely after the compen - sation of secured claims, estate claims or claims with other preferential rights, such as budgetary claims. Subordinated claims Only after the discharge of these categories of credi - tors, to the extent that the debtor’s assets permit, will unsecured claims and, subsequently, subordinated claims be covered. 2.2 Priority Claims in Restructuring and Insolvency Proceedings Order of Distribution reorganisation plan. Unsecured claims In preventative procedures, the restructuring agree - ment and restructuring plan contain the debt pay - ment schedule. All the affected receivables may suf - fer haircuts, postponements/rescheduling, etc. In the judicial procedure of insolvency, with reference to the indicated categories, the law establishes the follow - ing satisfaction order from the amounts resulting from liquidation:
In order for a person to qualify as an insolvency prac - titioner, long-term higher-education studies in law or economic sciences need to be completed, and the person must have at least three years’ experience in the legal or economic area. Authorisation to act as an insolvency practitioner is also required. Other Participants in Insolvency Proceedings The syndic judge When a judicial insolvency procedure is opened, the legality of the conduct and of the measures taken by the insolvency practitioner are verified by the syndic judge. The creditors’ committee Within the procedure there is a creditors’ meeting, comprising all the creditors that have registered claims against the debtor. The creditors’ meeting votes on the formation of a creditors’ committee consisting of three or five creditors from the first 20 creditors, depending on the value of the receivables. This credi - tors’ committee has powers and duties of representa - tion of the creditors. The activity of the members of the committee is not remunerated. The member of the creditors’ committee who is in conflict of interest with the joint interest of the creditors participating in the procedure is obliged to abstain from voting under penalty of annulment of the decision of the creditors’ committee. In voluntary restructuring procedures, no committee or representative of the creditors is appointed, although such an appointment is not forbidden. 2. Creditors 2.1 Types of Creditors General Provisions, Legal Hierarchy of Claims In preventative procedures, the restructuring agree - ment and restructuring plan contain the debt payment schedule. In insolvency and bankruptcy proceedings, creditors’ claims are typically ranked based on a prior - ity system, which determines the order in which they are paid. This hierarchy is crucial in deciding how the amounts recovered from the foreclosure of the debt - or’s assets will be distributed, thus the law establishes an express satisfaction order from the amounts result -
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