Vol 16 (2019) - Issue 3

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The Recent Reforms in the Romanian Insolvency Law

The Romanian Government has recently taken several steps to modernise and simplify Romanian insolvency law, with a view to increasing the effectiveness of the insolvency proceedings. The result is a comprehensive set of updated insolvency rules in one single law, an enhanced protection of certain creditors and a strengthened out-of-court restructuring process.
The insolvency law is one of the most important pieces of regulation and in the last 20 years we have witnessed a legislative roller-coaster in the insolvency field in the attempt to align the local norms to the European standards.
Statistics indicate that successful restructuring proceedings in the insolvency files are quite rare and the complex effort to align the frequently conflicting interests of the parties fails almost every time because of the ‘no compromise’ policy of the creditors.