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ROMANIA ROMANIA MINISTRY OF JUSTICEMINISTRY OF JUSTICE

NATIONAL TRADE REGISTER OFFICENATIONAL TRADE REGISTER OFFICE

CROSS-BORDER INSOLVENCYCROSS-BORDER INSOLVENCY

CONTENTCONTENTSS

Applicable legislationApplicable legislationPublicityPublicityInternational International trendstrendsFutureFuture plans plansQ&AQ&A



NATIONALNATIONALLaw no.85/2006, a modern and complex approach Law no.85/2006, a modern and complex approach covers three applicable proceedings regarding entities facing covers three applicable proceedings regarding entities facing financial difficulties: financial difficulties:

insolvencyinsolvency reorganizationreorganization bankruptcybankruptcy

EUEUCouncil Regulation (EC) NoCouncil Regulation (EC) No. . 1346/2000 on insolvency proceedings1346/2000 on insolvency proceedingscovers cross-border cases at EU levelcovers cross-border cases at EU level



APPLICABLE LEGISLATIONAPPLICABLE LEGISLATION



PUBLICITYPUBLICITY Insolvency Proceedings Bulletin:Insolvency Proceedings Bulletin:

Quick judicial and administrative formalitiesQuick judicial and administrative formalities Ensures mandatory publication of procedural actsEnsures mandatory publication of procedural acts

Trade RegisterTrade Register Reflects changes in the debtor’s status regarding:Reflects changes in the debtor’s status regarding:

date of opening / closing insolvency proceedingsdate of opening / closing insolvency proceedings type of opened/closed insolvency proceedingstype of opened/closed insolvency proceedings name and address of appointed insolvency practitionername and address of appointed insolvency practitioner court decision on opening insolvency proceedingscourt decision on opening insolvency proceedings



PUBLICITYPUBLICITY



PUBLICITYPUBLICITY (case studies) (case studies) NORTEL NETWORKS ROMANIA SRL – part of Nortel GroupNORTEL NETWORKS ROMANIA SRL – part of Nortel Group

registered in Romaniaregistered in Romaniathe notification announcing the opening of the foreign procedure of the notification announcing the opening of the foreign procedure of administration (according to the English Law) was published in IPB no. 945 administration (according to the English Law) was published in IPB no. 945 on 26 February, 2009on 26 February, 2009The High Court of Justice of England and Wales, Chancery Division, The High Court of Justice of England and Wales, Chancery Division, Companies Court rules that COMI of the group is in England and the Companies Court rules that COMI of the group is in England and the administration procedure must be opened by the same Court against all 19 administration procedure must be opened by the same Court against all 19 companies belonging to this group, no matter where the registered office companies belonging to this group, no matter where the registered office is locatedis locatedThe Decision of the same Court through which the administration The Decision of the same Court through which the administration procedure was extended for a further period of 24 months is published in procedure was extended for a further period of 24 months is published in IPB no. 2374 on 25 March, 2010IPB no. 2374 on 25 March, 2010



PUBLICITY PUBLICITY (case studies) (case studies) DYTRAS SA SPANIA SUCURSALA BUCURESTI SECTOR 2DYTRAS SA SPANIA SUCURSALA BUCURESTI SECTOR 2

The Decision no. 1388/13.02.2013 of Bucharest Court – VII Civil Section, The Decision no. 1388/13.02.2013 of Bucharest Court – VII Civil Section, opening the secondary insolvency proceedings is published in IPB no.9519 opening the secondary insolvency proceedings is published in IPB no.9519 on 30 May, 2013on 30 May, 2013the main insolvency proceedings was open in Spain (Decision no. the main insolvency proceedings was open in Spain (Decision no. 1335/12-6/26.12.2012)1335/12-6/26.12.2012)according to article 3 of Council Regulation (EC) No 1346/2000 on according to article 3 of Council Regulation (EC) No 1346/2000 on insolvency proceedings and article 33 from the Romanian national law, insolvency proceedings and article 33 from the Romanian national law, only secondary proceedings could be openonly secondary proceedings could be openthe appointed judicial administrator notified IPB (Bulletin no. the appointed judicial administrator notified IPB (Bulletin no. 7476/24.04.2013) and Trade Register7476/24.04.2013) and Trade Register



PUBLICITY PUBLICITY (case studies) (case studies) IPB – NORTEL NETWORKS ROMANIA SRLIPB – NORTEL NETWORKS ROMANIA SRL



PUBLICITY PUBLICITY (case studies) (case studies) Trade Register – NORTEL NETWORKS ROMANIA SRLTrade Register – NORTEL NETWORKS ROMANIA SRL



INTERNATIONAL TRENDSINTERNATIONAL TRENDS Communication no. 742/12.12.2012 from the Commission to the Communication no. 742/12.12.2012 from the Commission to the

European Parliament, The Council and the European Economic and European Parliament, The Council and the European Economic and Social Committee - A new European approach to business failure and Social Committee - A new European approach to business failure and insolvency:insolvency:

from 2009 - 2011 an average of 200,000 companies went bankrupt from 2009 - 2011 an average of 200,000 companies went bankrupt per year in EU and about a quarter of these cases have a cross-border per year in EU and about a quarter of these cases have a cross-border elementelement

changes need to be made in domestic insolvency legislationchanges need to be made in domestic insolvency legislation

amending Insolvency Regulation no.1346/2000 (key action - Single amending Insolvency Regulation no.1346/2000 (key action - Single Market Act II, 2012)Market Act II, 2012)



INTERNATIONAL TRENDSINTERNATIONAL TRENDS National legislationNational legislation

early warning tools for prevention in the field of insolvencyearly warning tools for prevention in the field of insolvency second chance to honest businesses (distinction between honest and second chance to honest businesses (distinction between honest and

fraudulent bankruptcy)fraudulent bankruptcy) discharge period for honest entrepreneurs (Member States agreed on discharge period for honest entrepreneurs (Member States agreed on

the need to harmonize the discharge period to less than three years)the need to harmonize the discharge period to less than three years) reviewing of the conditions under which the creditor may initiate reviewing of the conditions under which the creditor may initiate

insolvency proceedingsinsolvency proceedings transparency of claims filing and verification processtransparency of claims filing and verification process promoting restructuring planspromoting restructuring plans



INTERNATIONAL TRENDSINTERNATIONAL TRENDS Amending Insolvency Regulation no.1346/2000Amending Insolvency Regulation no.1346/2000

scope - does not cover pre-insolvency and hybrid proceedingsscope - does not cover pre-insolvency and hybrid proceedings difficulties in applying COMI concept in practice; forum shopping difficulties in applying COMI concept in practice; forum shopping

through abusive COMI relocationthrough abusive COMI relocation secondary proceedings - impossible successful restructuring of a secondary proceedings - impossible successful restructuring of a

debtor; no assets controldebtor; no assets control insolvency of a multi-national enterpriseinsolvency of a multi-national enterprise publicity of insolvency proceedings and the lodging of claims - publicity of insolvency proceedings and the lodging of claims -

mandatory publication or registration; European Insolvency Registermandatory publication or registration; European Insolvency Register



FUTUREFUTURE PLANS PLANS Insolvency CodeInsolvency Code

financed by the World Bankfinanced by the World Bank will contain all relevant insolvency national regulationswill contain all relevant insolvency national regulations first country in EU adopting such a codefirst country in EU adopting such a code

Insolvency Register InterconnectionInsolvency Register Interconnection Romania is one of the seven EU states part of this e-Justice sub-Romania is one of the seven EU states part of this e-Justice sub-

projectproject we are ready to facilitate access to official and trusted insolvency we are ready to facilitate access to official and trusted insolvency

related informationrelated information

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Thank you!Thank you!

Gabriela FierbinGabriela FierbințțeanueanuIPB – NTRO, MinistIPB – NTRO, Ministryry of Justice of Justice

[email protected]@b.onrc.ro

