THE RESTRUCTURING PROCEDURE OF PREVENTIVE ARRANGEMENTS WITH CREDITORS, THROUGH THE PRISM OF LAW NO. 85/2014, AMENDED AND COMPLETED BY LAW NO. 216/2022. NEGOTIATION AND VOTING OF THE RESTRUCTURING PLAN
THE RESTRUCTURING PROCEDURE OF PREVENTIVE ARRANGEMENTS WITH CREDITORS, THROUGH THE PRISM OF LAW NO. 85/2014, AMENDED AND COMPLETED BY LAW NO. 216/2022. NEGOTIATION AND VOTING OF THE RESTRUCTURING PLAN

Summary/Abstract: The differences between the legal provisions and the national procedures regarding preventive restructuring, insolvency and debt discharge conditions, as well as the constant efforts undertaken at the level of the European Union, over a period of several years, led to the adoption in 2019 of the first regulation that addresses the harmonization of legislation in this matter, namely Directive (EU) 2019/1023[1].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 aims to offer "bankrupt" entrepreneurs a second chance, and to make it easier for viable companies in financial difficulty to access restructuring measures, at an early stage, to prevent insolvency.The directive had as its first transposition deadline July 17, 2021, but the member states had the possibility, provided by the directive, to extend this deadline, by at most one year, a possibility also used by Romania, by notifying the European Commission in this sense. For the provisions relating to the use of electronic means of communication in insolvency prevention and insolvency procedures, which require developments in the IT system, including for judicial procedures, a longer transposition period was provided, as follows: for the declaration of debts, the submission of restructuring or repayment plans and communications to creditors, until July 17, 2024, and for the filing of appeals and the formulation of appeals, until July 17, 2026.Regarding preventive restructuring procedures, Directive (EU) 2019/1023 does not impose a single procedure on the member states, so Romania has chosen to regulate two preventive restructuring procedures, namely the restructuring agreement procedure, and the preventive arrangements with creditors procedure.

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