Consequences of Confirming the Restructuring Agreement in the Rescue Procedure
Consequences of Confirming the Restructuring Agreement in the Rescue Procedure

Author(s): Luiza Cristina Gavrilescu
Subject(s): Business Economy / Management, Law on Economics, Accounting - Business Administration, Socio-Economic Research
Published by: ADJURIS – International Academic Publisher
Keywords: confirmation of restructuring agreement; insolvency prevention; debtor rescue; subsequent financing; debt write-of;
Summary/Abstract: The restructuring agreement procedure is one of the latest mechanisms available to viable debtors to prevent insolvency. The agreement between the debtor and the creditors holding the claims affected by the plan is made through the restructuring administrator and is confirmed by the confirmation of the syndic judge. The modified receivables will be paid according to the agreement, the rest of the debts will be paid under previous contracts, but only after priority payment of subsequent financing. Outstanding contracts will continue to be executed during the implementation of the recovery plan. The debtor retains the right to manage his business but will have to restructure his activity according to the plan. The restructuring manager shall ensure that the measures set out in the plan are implemented. Amendments to the restructuring agreement may be ordered if the creditors' challenge is upheld. If the provisions of the plan are fulfilled, the procedure will be closed by decision of the syndic judge, the debtor's debts will be written off according to the agreement. In case of non-fulfillment of the provisions of the plan, the procedure ceases, but the claims terminated by the agreement will be reborn.

• Details
• Contents