Romania

There were around 28,000 new insolvency procedures in Romania last year, and this year this figure could reach or even exceed 30,000, said Valentina Burdescu, director of the Bulletin of Insolvency Procedures (BPI), during the second National Insolvency Conference, Balkans.com reported. She said that companies in the services, commerce, constructions, HORECA (hotels, restaurants, cafees) and transport sectors are prone to go into insolvency, a situation that has remained rather unchanged in the last years. “Most of the procedures are simplified and (e.n.

FlyRomania (X5, Bucharest Otopeni) has filed for insolvency with a Bucharest court. A filing seen by ch-aviation has now called for all creditors to lodge claims with the airline's interim trustee, Dinu Urse Associates, with the deadline for submissions set for October 30. Doubts about the Ten Airways (X5, Bucharest Baneasa) subsidiary's long-term viability first surfaced in June when poor load-factors forced it to dramatically scale down its flights, just one month after it launched operations.

The Bucharest court has recently approved the insolvency request for Romanian construction company Tehnologica Radion, whose owner, Theodor Berna, is currently under preventive arrest for tax evasion and money laundry, Romania-Insider.com reported. The company had a turnover of EUR 80.7 million in 2013, and a net profit of EUR 876,000. However, it amassed some EUR 86 million in debts, while its due receivables were of EUR 57 million. Prosecutors recently froze Tehnologica Radion’s accounts and goods, as the company is also part of the trial which involves its owner.

Tehnologica Radion, one of the largest local construction companies in Romania, filed for insolvency on September 4, according to data from the Bucharest Court. The court will rule on the company’s request on September 15, Romania-Insider.com reported. The request came a few weeks after Theodor Berna, the company’s administrator and one of its main shareholders, was arrested in a tax evasion and money laundering case. The damages in this case are estimated at some EUR 100 million.

Necessair Consulting, the company controlled by Ten Airways director Catalin Butu that could supply tickets to Fly Romania flights, has asked for its insolvency in the Bucharest Tribunal, Business Review reported. The trial term has been set for September 3rf 2014. Tickets for Fly Romania can no longer be purchased on the website. Two months ago, Fly Romania flights were being cancelled left and right. The number of tickets bought did not match the number of flights according to Fly Romania representatives.

Romanian businessman Nelu Iordache accuses Casa de Insolventa Transilvania (CITR), the former judicial administrator of construction company Romstrade, that it looted his company, causing losses by ending contracts, maintaining others and signing new ones, but also by selling assets of Blue Air airline, Romania-Insider.com reported. Iordache, the owner of both companies, who is serving jail time for misuse of EU funds, made a series of accusations in a report addressed to creditors, reports local Adevarul.

Romanian President Traian Basescu signed into law the new Insolvency Code. The legal framework establishing the new preemptive and insolvency procedures was attacked in Constitutional Court on Aprill 22 by a group of PNL deputies who argued that the bill goes against free access to justice and the right to property, Business Review reported. On May 21st, the Constitutional Court established that the bill is in fact constitutional.

Romanian state-owned hydro power producer Hidroelectrica will likely exit insolvency in May or June 2015, then carry out a stock market listing in the second half of that year, its manager Remus Borza told Reuters on Wednesday. Borza's comments are the first time the company has given those dates and are later than a "best case" estimate made last month by a minority shareholder in the company. They also differ from a projection by the energy minister in April, that the firm could exit insolvency as early as November this year, according to local media.

The Romanian state–owned aviation company Romavia will become insolvent in the third quarter of this year, as it has due debts of some EUR 10 million., according to Mediafax. The Government paid the company’s previous debts, shrunk its activity but also signed off on unjustified expenses. The company, which provides air transport services for passengers and freight, as well as special flights for high level officials, had its air operation certificate suspended as the company lacked money to lease planes. This led Romavia to lose its exclusivity in organizing special flights.

Four Romanian judges are currently investigated for having asked for and received money in several insolvency cases, Romania-Insider.com reported. Prosecutors started the investigation against Ion Stanciu, Elena Rovenţa, Ciprian Sorin Viziru and Mircea Moldovan, all judges of the Bucharest court. They allegedly delayed some insolvency cases, or named certain judicial administrators to favor third parties, as well as disclosed information about the insolvency cases they handled.