What judicial reorganisation involves
Reorganisation offers a route to recovery within insolvency proceedings where the business can sustain a feasible plan. It requires specific measures, a payment programme and respect for creditors’ rights. Continuing to trade after proceedings open does not, by itself, mean a plan has been confirmed or bankruptcy will be avoided.
The plan should explain how the necessary resources will be generated: operating revenue, financing, capital contributions, asset disposals or other permitted measures. Projections should account for current costs, essential contracts and the risks that contributed to the company’s difficulties.
Who may propose a plan
Under Article 132 of Law No. 85/2014, a plan may be proposed by the debtor, the insolvency administrator or one or more creditors together holding at least 20% of the claims in the final schedule. The debtor must comply with the requirements concerning its intention to reorganise and the necessary approvals.
The general deadline for proposing a plan is 30 days after publication of the final schedule in the Insolvency Proceedings Bulletin (BPI). On justified grounds, the insolvency judge may grant the statutory extension of up to 30 days. Financial and legal preparation should begin beforehand, allowing this period to be used to finalise an already substantiated proposal.
How long a legal entity’s plan may last
For legal entities, Article 133(3¹) permits a plan implementation period of four years from confirmation. Amendments and extensions are possible under Article 139(5), but the total period cannot exceed five years from initial confirmation. An extension is not automatic and does not add a further five years to the original term.
These rules must be considered against the commencement date of the proceedings. Law No. 216/2022 preserves the previous law for proceedings started before it entered into force. A generic reference to a three-year plan is therefore incomplete for companies under the current regime, while automatically applying four years to every older case is equally incorrect.
How creditors assess the plan
Creditors examine the payment programme, the treatment of their class and the comparison with the relevant statutory alternative. Security value, claim ranking and estimated recoveries inform this assessment. Voting takes place within the statutory classes and majorities; confirmation is a matter for the insolvency judge.
A plan cannot be assessed solely by the nominal percentage promised. Payment timing, the likelihood of receipts, operating costs and dependence on financing not yet secured may significantly affect the economic outcome. Disputed claims and changes in asset values should be incorporated into implementation scenarios.
Obligations that continue after confirmation
The company must implement the plan and manage its current obligations. Periodic reports and reviews allow compliance and business viability to be assessed. Failure to comply with the plan, accumulation of current debts in the circumstances specified by law or an inability to recover may lead to bankruptcy.
Confirmation does not automatically release co-debtors or guarantors. Article 140(4) preserves creditors’ claims against them for the full debt, even where they voted for the plan, taking account of payments received and the specific legal circumstances.
Documents and decisions to prepare
Murar și Asociații assists companies and creditors with the legal preparation, negotiation, assessment and challenge of reorganisation plans. Our work is coordinated with the insolvency administrator and financial advisers, including where foreign lenders or creditors are involved.
- The final claims schedule, security and asset value estimates.
- Budgets, cash flow forecasts and funding assumptions.
- Essential contracts and proposed operational measures.
- The payment programme, corporate approvals and case documents.
Useful questions
Can every insolvent company enter reorganisation?
No. Statutory eligibility, a feasible plan, creditor voting and court confirmation are required. Some situations lead to simplified proceedings or bankruptcy.
Can a plan be amended after confirmation?
Yes, subject to the statutory procedure, creditors’ rights and the applicable overall time limit. An internal company decision alone does not change a confirmed plan.
Legal sources
- Law No. 85 of 25 June 2014 — Articles 132–140 and 143–145
- Law No. 216 of 14 July 2022 — Article I, particularly points 86 and 94; Article VII
- Law No. 239 of 15 December 2025 — Articles XXIX and XXXII.
This analysis provides general information by reference to the sources and date stated. Advice on a specific situation depends on the documents, applicable law and any transitional rules.