Law 216 of 14 July 2022 amends and supplements Law 85/2014 on insolvency prevention and insolvency proceedings and other legislation. The new law transposes the business prevention mechanisms introduced at European level by Directive 2019/1023.

The amendments to the insolvency law implement the business prevention mechanisms imposed by Directive 2019/1023 and clarify certain concepts and ways of action that were hitherto left to the discretion of the parties or to different interpretations by the courts.

On October 2, 2018, the Official Gazette of Romania published GEO 88/2018 for the modification and supplementation of certain normative acts in the field of insolvency and of other normative acts, which instates significant changes related to the current conditions in which companies subject to the insolvency proceedings may access a part of the protection mechanisms provided by the law.

These changes were adopted by the Romanian Government in the context in which, only during the first seven months of this year, over 5,200 companies underwent insolvency proceedings.