Reducing the phenomenon of insolvency of companies is a problem at the level of all states, especially in the conditions of an economic crisis, when the number of companies in a difficult situation is increasing. With the transfer to national legislation of EU Directive No. 1023/2019 Law No. 216/2022 amended Law No. 85/2014, the preventive restructuring framework is changed in order to provide more effective means of rescue for companies experiencing financial difficulties to be able to restructure their business and avoid bankruptcy. In this regard, the procedure for carrying out preventive measures was adjusted, which made it easier for companies in a difficult situation to obtain creditor approval of the Restructuring Plan.

What is a preventive agreement and who can request the opening of the procedure

A concordat is a bankruptcy court proceeding that suspends enforcement while the debtor resumes business and pays all or part of its breached claims based on a restructuring plan voted on by the breached creditors and approved by the syndication judge after enforcement review. conditions of legality. It offers the distressed company the possibility of recovery on the basis of a Restructuring Plan, which must also provide for the payment of claims against all or part of the creditors (the creditors affected by the agreement) and which, after the approval of the creditors, will be approved by the syndication judge.

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The article was signed by Christian Gavril, director of PwC Business Recovery Services, and Corneliu Mushat, senior manager of PwC Business Recovery Services

Article supported by PwC Romania