THE TRANSPOSITION OF DIRECTIVE (EU) 2019/1023. THE PROCEDURE OF RESTRUCTURING AGREEMENTS AND THE PROCEDURE CONCERNING PREVENTIVE ARRANGEMENTS WITH CREDITORS
THE TRANSPOSITION OF DIRECTIVE (EU) 2019/1023. THE PROCEDURE OF RESTRUCTURING AGREEMENTS AND THE PROCEDURE CONCERNING PREVENTIVE ARRANGEMENTS WITH CREDITORS

Summary/Abstract: Directive (EU) on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 (Directive on restructuring and insolvency)[1], and the transposition bill[2], aim to facilitate access to restructuring measures at the first signs of difficulty, by adopting legislative measures that allow honest entrepreneurs in a state of insolvency or overindebted entrepreneurs to obtain a second chance, by regulating effective preventive restructuring, insolvency and debt discharge procedures. The directive's first transposition deadline was July 17, 2021, but the member states had the possibility to extend this deadline by at most one year, a possibility also used by Romania. Directive (EU) 2019/1023 does not impose a single restructuring procedure on the member states, and as a result Romania has chosen to regulate two preventive restructuring procedures: the restructuring agreement procedure and the preventive arrangement with creditors procedure.

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