ROMANIA Law and Practice Contributed by: Monia Dobrescu and Mădălina Trifan, Mușat & Asociații
6.16 Effect of the Tenant’s Insolvency According to the insolvency legislation, any agreements in progress are considered to be maintained at the date of the opening of the insolvency procedure, while any contractual clauses terminating ongoing contracts, forfeiting the benefit of the term, modifying the contract to the detriment of the debtor or declaring early enforceability for the reason of the opening of proceedings shall be deemed unwritten. However, in order to increase the value of the debtor’s patrimony, the judicial administrator/liq - uidator may terminate any agreement, unexpired leases or other long-term agreements within a limitation period of three months from the date of the opening of the insolvency procedure, as long as such agreements have not been fully or substantially performed by all parties involved. In this situation, the agreement is considered ter - minated as of the date of the notification sent by the judicial administrator of the debtor (tenant) to the landlord. The insolvency legislation also entitles the other contracting party (landlord) to notify the judicial administrator/liquidator of the termination of the agreement. The judicial administrator/liquidator must respond within 30 days, under the sanction of the contract being considered terminated at the end of such term. Accordingly, the judicial administrator/liquidator will no longer be able to request the performance of the contract. If the insolvency administrator/liquidator requests the performance of the contract, they shall state quarterly in the activity reports wheth - er the debtor has the funds necessary to pay for the rent. On a separate matter, for claims that are dated before the opening of the proceedings, the land -
lord will lodge its statement of receivables along with the proofs of debt within the term set out in the decision to open the proceedings. 6.17 Right to Occupy After Termination or Expiry of a Lease As a general rule, the tenant does not have the right to continue to occupy the relevant real estate after the expiry or termination of a com - mercial lease. If the tenant continues to occupy the premises and fulfil its obligations after the expiry date without any opposition from the landlord, the lease is automatically renewed for an indefinite period, under the same conditions, including those related to guarantees. 6.18 Right to Assign a Leasehold Interest If it is not expressly prohibited by contract, the tenant may conclude a sublease or even assign the lease. These agreements may cover all or a portion of the leased premises. Any prohibition on subleasing also includes a prohibition on assigning the lease, but a prohibi - tion on assigning the lease does not include a prohibition on subleasing. 6.19 Right to Terminate a Lease If the duration is indefinite, any party may termi - nate the agreement by notifying the other party. The legislation stipulates the notice period that must be observed. When one of the parties to the lease does not perform its obligations aris - ing from this agreement without justification, the other party has the right to terminate the lease, with compensation, if applicable, according to law. If the property is completely destroyed or can no longer be used for its designated use, the agree - ment shall terminate ipso jure. If the impossibility
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