The role of the Romanian State based on the new amendments to the insolvency law

Author:Andreea Stoican
Position:Department of Law, Bucharest University of Economic Studies, Romania, andreeastoican@yahoo.co.uk
Pages:133-139
SUMMARY

Law no. 85/2014 on the insolvency prevention and insolvency procedures, envisaged as of its entry into force as a true “Insolvency Code”, is the main tool for setting up a collective procedure for covering the debtor’s liability, as well as an opportunity to redress the activity of a company in financial distress. The recent amendments brought by the law-maker through the entry onto force, on... (see full summary)

 
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The role of the Romanian State based on the new amendments
to the insolvency law
Assistant professor Andreea STOICAN1
Abstract
Law no. 85/2014 on the insolvency prevention and insolvency procedu res,
envisaged as of its entry into force as a true “Insolvency Code”, is the main tool for setting
up a collective pro cedure for covering the debtor’s liability, as well a s an opportunity to
redress the activity of a company in financia l distress. The r ecent amendments brought by
the law-maker through the entr y onto force, on October 02, 2018, of the Emergency
Ordinan ce no. 88/2018 for amending and supplementing nor mative acts in the field of
insolvency and other normative acts, although br ought with the intention o f improving the
exiting procedur e to date as a r esult of the pr actices found during the four years since the
Insolvency Law has been implemented, succeeded, although proba bly unintentionally, to
create a potential bias towards one of the main creditors encountered in the procedure,
namely, the State. This pa per therefore, consider ing the extremely short timespan since the
entry into force of the Emergency Ordina nce no. 88/2018, proposes by no manner of means
to make no criticism on the new regulation , which might even prove effective on the long run
as a result of the observation of the pra ctice and concrete implementation of the pr ovisions
therein, but only to raise an ala rm on some aspects which, at first sight, seem to create cer tain
differences between the creditors by favouring, at lea st theoretically, a certa in creditor.
Keywords: insolvency, creditors, State, valuation of a ssets, debt recovery.
JEL Classification: K22, K23
1. Introduction
Law no. 85/2014 on the insolvency prevention and insolvency procedures2,
envisaged as of its entry into force as a true “Insolvency Code”, is the main tool for
setting up a collective procedure for covering the debtor’s liability, as well as an
opportunity to redress the activity of a company in financial distress3.
The recent amendments brought by the law-maker through the entry onto
force, on October 02, 2018, of the Emergency Ordinance no. 88/2018 for amending
1 Andreea Stoican Department of Law, Bucharest University of Economic Studies, Romania,
andreeastoican@yahoo.co.uk.
2 Published in the Official Gazette, Part I no. 466 on 25/06/2014, entered into force on 28/06/2014.
3 See Nasz, Csaba Bela, Pr ocedurile de prevenire a insolvenei (Insolvency prevention proceedingds),
Universul Juridic Publishing House, Bucharest, 2015, p. 4; Nasz, Csaba Bela, Declanarea procedurii
insolvenei (Initiating the insolvency proceedings), Hamangiu Publishing House, Bucharest, 2014, p.
7; Rosu, Robert Mihaita; Mihailescu, Catalina Maria; Petcu, Dorin George, Falimentul i lichidarea
(Bankruptcy and liquida tion), Universul Juridic Publishing House, Bucharest, 2015, p. 13; Saracut,
Mihaela, Participanii la procedura insolvenei, Universul Juridic Publishing House, Bucharest, 2015,
p. 10; Turcu, Ion, Codul insolvenei. Legea nr. 85/2014. Comentariu pe articole, Ediia a -V-a
(Insolvency Code. Law no. 85/2014. Comments per articles, 5th Edition), C.H. Beck Publishing
House, Bucharest, 2015, p. 8.

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