In the context of the COVID-19 pandemics, the Romanian Government has introduced certain facilities for loans granted by credit institutions and non-banking financial institutions to certain categories of debtors under Government Emergency Ordinance no. 37/2020 ("GEO 37/2020") as further detailed by its implementation norms set out under Government Decision no. 270/2020.
Public procurement contracts are awarded, based on award criteria, to bidders who meet two conditions:
i. criteria for qualitative selection and
ii. requirements of the tender to be submitted according to the procurement documents.
Criteria for qualitative selection include grounds for exclusion; reasons for which the bidder could be excluded from award procedures are stated in the public procurement legislation.
Insolvency that stems from the obligations assumed by a joint venture may concern any of the associates. Such proceeding, especially when it has an international dimension, requires a broader perspective on some of the requirements set forth by law with respect to the initiation and application of the proceeding.
Several questions immediately come to mind when your client cannot pay. One question in regard to Romanian debtors is what happens with the debtor’s ongoing contracts when the insolvency starts?
One of the main principles governing Romanian insolvency proceedings is that steps should be taken to re-organise the debtor affairs before the step of bankruptcy.
A draft government ordinance amending the Romanian insolvency law was published on September 12. The bill is intended to increase recoverability of state receivables from insolvent companies and to reduce the debtor’s control over the proceedings.
One of the main changes relates to denying the existing right of the insolvent debtor to nominate an insolvency practitioner to be appointed as official receiver. Under the current procedure, it was mandatory for the insolvency court to follow debtor’s proposal, if the creditors did not make a proposal of their own.
On 2 October 2018, the Romanian Official Gazette published Government Emergency Ordinance, ("GEO 88/2018"), for the amendments of certain regulations in the field of insolvency and other legislation.
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.
During Thursday's meeting, the Romanian Government approved a draft Government Ordinance regulating certain fiscal-budgetary measures (Draft GO). The Draft GO tackles upon various matters such as (i) restructuring measures of budgetary duties outstanding as at 31 December 2017,(ii) amending certain provisions of the Romanian Fiscal Code and of the Romanian Fiscal Procedure Code, or (iii) repealing certain legislative provisions. Additionally, the Draft GO aims to amend particular provisions of Law no.
The Joint Venture represents a judicial-economic mechanism intended to facilitate certain activities and operations which none of the associates, taken separately, would have the necessary weight and means to properly accomplish.
The Romanian High Court of Cassation and Justice has ruled on April 4th, 2019 the decision no. 12 (Decision in the interest of the law) that put an end to the controversy over the legal regime of the expenses representing local taxes owed by the debtor for the immovable assets sold within the insolvency procedure.
This controversy has revolved around the question whether these taxes might be qualified either as budgetary receivables or expenses for the preservation of assets.