ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
CROSS-BORDER INSOLVENCY
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
CONTENTS
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Applicable legislation
Publicity
International trends
Future plans
Q&A
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
APPLICABLE LEGISLATION
 NATIONAL
Law no.85/2006, a modern and complex approach
 covers three applicable proceedings regarding entities facing
financial difficulties:
 insolvency
 reorganization
 bankruptcy
 EU
Council Regulation (EC) No. 1346/2000 on insolvency proceedings
 covers cross-border cases at EU level
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
PUBLICITY
 Insolvency Proceedings Bulletin:
 Quick judicial and administrative formalities
 Ensures mandatory publication of procedural acts
 Trade Register
 Reflects changes in the debtor’s status regarding:
 date of opening / closing insolvency proceedings
 type of opened/closed insolvency proceedings
 name and address of appointed insolvency practitioner
 court decision on opening insolvency proceedings
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
PUBLICITY
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
PUBLICITY (case studies)
NORTEL NETWORKS ROMANIA SRL – part of Nortel Group
 registered in Romania
 the notification announcing the opening of the foreign procedure of
administration (according to the English Law) was published in IPB no. 945
on 26 February, 2009
 The High Court of Justice of England and Wales, Chancery Division,
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 companies belonging to this group, no matter where the registered
office is located
 The Decision of the same Court through which the administration
procedure was extended for a further period of 24 months is published in
IPB no. 2374 on 25 March, 2010
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
PUBLICITY (case studies)
DYTRAS SA SPANIA SUCURSALA BUCURESTI SECTOR 2
The Decision no. 1388/13.02.2013 of Bucharest Court – VII Civil Section,
opening the secondary insolvency proceedings is published in IPB no.9519
on 30 May, 2013
the main insolvency proceedings was open in Spain (Decision no.
1335/12-6/26.12.2012)
according to article 3 of Council Regulation (EC) No 1346/2000 on
insolvency proceedings and article 33 from the Romanian national law,
only secondary proceedings could be open
the appointed judicial administrator notified IPB (Bulletin no.
7476/24.04.2013) and Trade Register
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
PUBLICITY (case studies)
 IPB – NORTEL NETWORKS ROMANIA SRL
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
PUBLICITY (case studies)
 Trade Register – NORTEL NETWORKS ROMANIA SRL
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
INTERNATIONAL TRENDS
 Communication no. 742/12.12.2012 from the Commission to the
European Parliament, The Council and the European Economic and Social
Committee - A new European approach to business failure and insolvency:
 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
element
 changes need to be made in domestic insolvency legislation
 amending Insolvency Regulation no.1346/2000 (key action - Single
Market Act II, 2012)
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
INTERNATIONAL TRENDS
 National legislation
 early warning tools for prevention in the field of insolvency
 second chance to honest businesses (distinction between honest and
fraudulent bankruptcy)
 discharge period for honest entrepreneurs (Member States agreed on
the need to harmonize the discharge period to less than three years)
 reviewing of the conditions under which the creditor may initiate
insolvency proceedings
 transparency of claims filing and verification process
 promoting restructuring plans
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
INTERNATIONAL TRENDS
 Amending Insolvency Regulation no.1346/2000
 scope - does not cover pre-insolvency and hybrid proceedings
 difficulties in applying COMI concept in practice; forum shopping
through abusive COMI relocation
 secondary proceedings - impossible successful restructuring of a
debtor; no assets control
 insolvency of a multi-national enterprise
 publicity of insolvency proceedings and the lodging of claims mandatory publication or registration; European Insolvency Register
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
FUTURE PLANS
 Insolvency Code
 financed by the World Bank
 will contain all relevant insolvency national regulations
 first country in EU adopting such a code
 Insolvency Register Interconnection
 Romania is one of the seven EU states part of this e-Justice subproject
 we are ready to facilitate access to official and trusted insolvency
related information
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
Q&A
ROMANIA
MINISTRY OF JUSTICE
NATIONAL TRADE REGISTER OFFICE
Thank you!
Gabriela Fierbințeanu
IPB – NTRO, Ministry of Justice
gabriela.fierbinteanu@b.onrc.ro