On 18 May 2020, the same date that Romania switched to a state of alert that will expire on 17 June 2020, Law no. 55/2020 entered into force, which contains amendments to legal provisions for regular insolvency during the state of alert.

The most important amendments include a deferral of the obligation to file for insolvency, an increase in the threshold for petitioning for insolvency, extension of the duration for the reorganisation plan and an extension of other procedural deadlines.

The following is a list of the major amendments contained in the law:

Măsurile administrative adoptate în lupta cu virusul SARS-CoV-2 pentru reducerea extinderii acestuia au produs, în mod previzibil, consecințe financiare negative în mediul de afaceri, care s-a confruntat în contextul acestor măsuri cu o lipsă de lichidăți.

During the current state of emergency, the Romanian government has adopted a series of measures aimed at reducing the negative effects of the COVID-19 pandemic on the business environment in Romania, such as supporting the payment of technical unemployment, state guarantees for loans with subsidised interest rates for SMEs, and VAT refunds to companies. However, in some sectors of the economy being severely hit, we expect possible future insolvency cases.

1. Immediate action to be taken by the management of a company in the current context

Same as most of the states where SARS-CoV-2 crisis emerged, Romania has adopted a quite extensive package of measures meant to sustain the shaken economy pending the cease of the emergency state. In this context, the Romanian Government regulated and is still implementing certain specific measures for easing the economic burden on companies during the state of emergency.

1. Immediate action to be taken by the management of a company in the current context

Numărul de insolvențe în România este, la momentul de față, semnificativ și, cel mai probabil, urmează a înregistra un trend ascendent având în vedere prognozele economice care prefigurează – pentru perioada următoare – o nouă recesiune economică.

September 2016 CMS_LawTax_Negative_28-100.eps Enforcing Security over Real Estate and Shares across Europe 2 | Enforcing Security over Real Estate and Shares across Europe 3 Introduction 4 Albania 5 Austria 6 Belgium 7 Bulgaria 8 Czech Republic 9 England and Wales 10 France 11 Germany 12 Hungary 13 Italy 14 Luxembourg 15 Montenegro 16 Netherlands 17 Poland 18 Portugal 19 Romania 20 Russia 21 Scotland 22 Serbia 23 Slovakia 24 Slovenia 25 Spain 26 Turkey 27 Ukraine 28 Contacts Contents 19 practice and sector groups working across offices Ranked 2nd most global law firm in the Am Law 2015 Glob

1. General aspects

The primary legislation governing insolvency and restructuring proceedings is Law 85/2014 on preventing insolvency and insolvency proceedings¹ (the ”Insolvency Law”).

The Insolvency Law has been amended on October 2, 2018 by Government Emergency Ordinance no. 88/2018 for amending and supplementing regulations on insolvency² (the ”G.E.O. no. 88/2018”).

Din 11 iulie 2020 a intrat în vigoare Legea nr. 113/2020 privind aprobarea Ordonantei de urgenta a Guvernului nr. 88/2018 pentru modificarea si completarea unor acte normative in domeniul insolventei si a altor acte normative publicată în Monitorul Oficial nr. 600 din 8 iulie 2020.

Ordonanța a fost adoptată cu anumite modificări realizate în Parlament. Astfel, acestea sunt principalele modificări:

WHAT DUTY?

WHAT DOES IT MEAN?

WHEN DOES IT APPLY?

Maintenance of solvency Management of business risks