We would hereby like to remind you that `insolvency` stands for stat debtor’s patrimony state that is characterized by an insufficiency of available pecuniary funds for the due payment of certain, liquid and exigible liabilities.
By `legal reorganization` one shall understand the procedure duly applying to the debtor under the insolvency procedure, as such debtor stands for a legal entity, in view of duly paying the latter’s debts and liabilities, in line with the specific receivable payment schedule. The reorganization procedure means the drawing up, authorization, endorsement, implementation and compliance with a certain plan, also called the “reorganization plan”, which shall envisage certain conditions.
Our Practice is competent for dealing with legal windup procedures, as well as with such reorganization procedures. In particular, we provide legal assistance and representation services in any and all insolvency – related stages.
”Law no. 85/2014 on preventing insolvency and insolvency procedures” stipulates that insolvency procedure may be initiated upon the creditor’s or the very debtor’s request to this end, if one meets the conditions duly regulated under the governing law in force.
”Law no. 55/2020 on various measures for duly preventing and fighting COVID-19 epidemics effects”, as published on May 14th 2020 in the Official Gazette, included a set of significant regulations regarding Law no. 85 / 2014, such as: the actual suspension of the debtor’s obligation to ask for the initiation of insolvency procedure during the state of alert, the amendment of various provisions regarding the legal threshold, and others alike.
Similar measures aimed at protecting companies against COVID-19 pandemics have also been enacted in other European Union states, such as Germany, and thus there has been an actual relaxation in terms of debtors’ obligation to declare their insolvency in the specific COVID-19 affected months.