ROMANIA Law and Practice Contributed by: Stan Tîrnoveanu, Alexandru Iorgulescu, Laura Retegan and Viorica Clima, Zamfirescu Racoți Vasile & Partners Attorneys At Law
ever, if the debtor’s activity allows it, the plan may last for any period shorter than three, or respectively, four years. The claims for current receivables are assessed by the insolvency administrator, who formulates a point of view. In the event there are any disputes with regard to the claimed receivable, the interested creditor may address the court of law. The reorganisation plan val - idly voted for by the creditors in accordance with the majority rule specified above is also mandatory for creditors who have not expressed a point of view. The reorganisation plan is public, may be analysed by each creditor, is submitted to the case file and to the trade registry and is usually also accessible online. Nonetheless, the plan must not contain detailed remarks regarding the conduct of the economic activ - ity, nor disclose the trade secrets of the company. The plan may be challenged before the syndic judge. To this end, the creditors can file objections regard - ing the legality of the reorganisation plan. Regarding objections based on non-legal grounds, the interested party may separately challenge the decision of the creditors approving such plan. In the event that the annulment of the decision of the creditors approving such plan is also requested, any objections regarding the legality of the reorganisation plan must be formu - lated in the same request. The plan is voted on by the creditors under the afore - mentioned conditions, and subsequently confirmed by the court. The receivables will be paid as per the schedule of payments, which is a mandatory annex of any reorganisation plan. At the time of payment of all the receivables listed in the schedule of payments, the reorganisation procedure may be closed and the company may re-enter the economic circuit. Stay of Enforcements From the date of opening of the insolvency procedure under the law, all judicial or extrajudicial actions or enforcement measures for the recovery of receivables against the debtor’s estate are suspended. From this point on, the receivables/claims can be requested only within the insolvency procedure. The creditor benefit - ing from a cause of preference may request the syndic
judge to lift the suspension with regard to their claim and to immediately sell the asset to which this prefer - ential cause applies in certain situations listed by law. If the administration right is not removed, the com - pany can continue to operate its business as usual after the date of opening of the procedure, under the supervision of the insolvency administrator. In cases where the court orders the removal of the administra - tion right, the management of the company passes to the insolvency administrator. After the procedure opening date, the shareholders of the debtor are summoned to elect a special admin - istrator. This will be the only entity able to manage the company, under the supervision of the insolvency administrator. In the observation period and during the reorganisation period, the debtor can obtain financing through direct negotiation with a financer and following approval of the loan conditions by its creditors. During the preventative proceedings, the debtor remains in control of the business, according to the principle “debtor in possession”. Roles of Creditors From the moment of drafting the preliminary table, creditors are registered by categories of receivables, namely the receivables benefiting from preference rights, salary receivables, budgetary receivables and simple contract receivables. All the creditors are invited to convene in a general meeting of creditors. If there are many creditors, a creditors’ committee of three or five members can be elected, chosen in the creditors’ meeting from those who manifest their intention to be part of the commit - tee, and in the order of the receivables, from the larg - est to the smallest, so that each category of creditor is represented. The expenses are incurred by each creditor, these not being settled by the debtor. Creditors have access to all the information brought to their attention by the insolvency administrator by means of its activity reports. These activity reports and the quarterly financial statements drafted in the
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