The maximum period for the adoption by court of the decision to initiate the insolvency process is reduced from 20 to 5 working days. This will be possible if, in the application, the debtor declares that it is in a state of insolvency and expresses its intention to liquidate or restructure the business. This is provided in a draft to amend the Insolvency Law, which was given a first reading by Parliament, IPN reports.
The bill was drafted by the Ministry of Economic Development and Digitalization. According to the authors, the initiative provides solutions to prevent delays in insolvency proceedings, improve the recovery of creditors' claims and ensure fair protection of the interests of all parties involved in the process.
The new provisions will allow the creditors' meeting to be held online, which means more efficiency and lower costs. At the same time, the recovery of debts regarding mandatory state social insurance contributions will be simplified in order to ensure employees' right to social benefits. Ensuring more efficient management of insolvent state-owned companies by ensuring their notification and the more active involvement of the debtor's representative in the insolvency procedure is also aimed.
"Through this intervention, we increase the power or weight of the debtor so that they can defend their rights. Secondly, we must limit and discourage as much as possible the practice "I am an insolvency administrator to make money". No – “I am an insolvency administrator to get the company back on its feet or I solve the problem in the other direction”. This is the system, unfortunately, at the moment and there is this problem that the current incentives system encourages abuses and people who work one hour a month," said Deputy Prime Minister Dumitru Alaiba.
According to him, the ministries of economy and justice will analyze the way in which the charges for the services of these insolvency administrators are set so as to "limit appetites".
According to data of the Public Property Agency, there are currently 49 state-owned enterprises and commercial companies in insolvency proceedings, and 14 are in liquidation proceedings.
