Insolvency and creditor rights

If the situation in which your company proceedings can not afford to pay for the company’s actual expenses (utilities, rent, salaries, and so on.), the payment at maturity for the  services, the supplied merchandise by suppliers or the amounts due in respect of taxes for state or local budget, and if this situation perpetuates on an average or a long time, you may consider, as an option on the recovery or liquidation of the company, opening of insolvency proceedings against it.

Thus, according to the company’s financial situation and the possibility or impossibility of it’s future recovery, insolvency proceedings opened against your company can take the following two forms:

Judicial reorganization, in the situation in which your company’s expenses are not disproportionate with the amount of revenue, as well as in the situation where the company and society are projecting income (invoices to be collected, commercial contracts that are going to be concluded, that are generating substantial profit, capital contribution to society, and so on);

Liquidation, in the situation in which the medium and long term costs for the society outweighs it’s income and if there is no real prospect of recovering your society work in the manner that we mentioned above (invoices to be collected, commercial contracts that are going to  be concluded, that are generating substantial profit, capital contribution to society, and so on);

Representation and legal assistance performed by our law office in the insolvency proceedings to be initiated against your company will include services such as, with title of example, but not limited to:

• Writing application for opening the insolvency proceedings of your company and related documentation;
• Legal representation and assistance in relation to the administrator / liquidator, an employee of our lawyers company, or the one proposed by your company;
• Legal representation and assistance before the bankruptcy judge in the court’s file covering insolvency of your company;
• Legal representation and assistance in relation to your company’s creditors (state institutions, legal entities or individuals);
• The wording of any documents necessary later in your company insolvency proceedings (greeting to complaints filed by creditors in to the table receivables of your company, answers to written requests of the administrator / liquidator or the bankruptcy judge throughout the insolvency proceedings, and so on).

The main favorable issues to the debtor against whom was opened the insolvency proceedings, are that no penalty or interest can be added to creditors arised before the opening of the insolvency proceedings and that at the opening of the all judicial procedure and extrajudicial documents (payment orders , low value claims, unsuccessful  actions, foreclosures, and so on) ongoing against the debtor or its property is suspended.

At the same time, our lawyers company will defend the commercial interests and the debtor legal person against whom was made an application for opening insolvency proceedings by a creditor. In this sense, our law office will draw up the challenge to application for the open insolvency proceedings, the debtor will also be provided with legal assistance and representation in front of the court, in the case background and in the call (if necessary) and will also draw any other documents necessary to avoid the opening of insolvency proceedings against the customer.

Our lawyers company accumulated extensive experience in cases covering insolvency procedure.  From this point of view, in the SCPA Murar and Associates portfolio are over a hundred completed or in progress cases in which we represented and legally assisted both insolvent debtor companies, as well as lending companies interested in recovering their one claims.

Where, during the course of the business relationship between a supplier and a customer, the creditor comes to believe that there is no real possibility to recover the amount owed by the debtor by judicial proceedings aiming at the enforcement thereof (the debtor at many practically insolvent) will have recourse, as a last resort measure of an application, for opening insolvency proceedings against that debtor.

As conditions of admissibility, a creditor may make by their own legal department or by our society advocates, such a request to open insolvency proceedings against a company only if it is holding against an outstanding debt, liquid and chargeable to a higher value of 40,000 lei and having a past due more than 60 days.

Also, if any of borrowers against his company has already opened insolvency proceedings (or by another creditor or by the debtor himself), a creditor may request admission of his claim to the list of creditors of the debtor respectively, followed later in the insolvency proceedings to be prioritized and the amount of the claim to be paid by the administrator / liquidator of the debtor.

Representation and legal assistance performed by our law office in insolvency proceedings in which your company will have as a creditor, will include services such as, by way of example, but not limited to:

• Customer assistance and representation at meetings of creditors convened by the administrator / liquidator of the debtor;
• Formulate and sustain the debtor company claims appeals to the table;
• Client representation by us lawyers to challenge acts performed by the receiver / liquidator, if they do not serve the interests of his client or were not prepared in accordance with legal provisions;
• Monitoring compliance with the debtor’s reorganization plan approved by the bankruptcy judge in reorganization proceedings;
• Judicial liquidator activity tracking the distribution of the amounts resulting from the realization of assets / debt collection debtor company in the bankruptcy / liquidation.

Our company lawyers have accumulated extensive experience in cases covering insolvency procedure. From this point of view, in the portfolio Murar SCPA and Associates, there are over a hundred cases completed or in progress (both in Bucharest and in the country), in which I represented and gave legal assistance to both insolvent debtor companies, as well as lending companies interested in recovering their claims.