Overview
Statistics show that a successful restructuring after insolvency proceedings are filed is quite rare. The effort to align usually conflicting interests amongst parties almost always fails due to the “no compromise” approach of creditors.
In Romania, the insolvency process is still associated with fraudulent debtors, vengeful creditors, biased insolvency practitioners (receivers), overloaded insolvency courts and judges with questionable reputations.
Our insolvency and restructuring team has extensive experience in navigating these highly complex proceedings and dealing with hostile debtors, co-creditors and insolvency practitioners alike. We have represented both debtors and creditors in sensitive insolvency cases that resulted in the successful implementation of restructuring plans.
Our Relevant Experience
- We assisted local subsidiaries of AEW Europe regarding litigation and insolvency matters pertaining to the operation and lease of an office building located in Bucharest (Victoriei Square – 27,000 sq.m.) and a shopping mall located in Targu Mures (51,350 sq.m.).
- We assisted the Intercora Group with respect to litigation and insolvency matters pertaining to the operation and lease of their asset portfolio, amongst which was an insolvency claim against DOMO and a civil claim against PROGES.
- We assisted Complexul Multifunctional Victoria, a local subsidiary of AEW Europe and owner of the America House Building, with litigation and insolvency matters involving the operation and lease of an office building located in Bucharest (Victoriei Square – 27,000 sq.m.).
- We assisted ERP Targu Mures, the local arm of AEW Europe and owner of the Promenada Shopping Mall, with litigation and insolvency matters involving the operation and lease of a shopping mall located in Targu Mures (51,350 sq.m.).
- We assisted and represented Vinarte, a top Romanian wine producer, throughout the reorganisation of an insolvent company. We provided legal assistance and advice in relation to financing and rescheduling the company’s distressed finances, as well as with distressed sales and the acquisition of assets.
Key Contacts
Restructuring
Statistics show that a successful restructuring after insolvency proceedings have commenced is quite rare.
The complex effort to align the usually conflicting interests of the parties fails almost every time because of the “no compromise” policy of creditors.
In Romania, the insolvency process is still associated with fraudulent debtors, vengeful creditors, biased insolvency practitioners/receivers, overloaded insolvency courts and judges with questionable reputations.
We have outstanding expertise and experience in navigating these highly complex proceedings and dealing with hostile debtors, co-creditors and insolvency practitioners. It’s a hard game, but we have learned to play it well (and by the rules).
We have represented both debtors and creditors in sensitive insolvency cases that resulted in the successful implementation of restructuring plans.
Key Contacts
Our Relevant Experience
- Assisting and representing Vinarte, a top Romanian wine producer, throughout the reorganization of a distressed company, including legal assistance and advice with respect to financing and rescheduling the company’s distressed finances, as well as in respect of distressed sales and the acquisition of assets.
Bankruptcy liquidation
Over the last few years, debt collection applications have been transferred from the commercial courts and arbitration tribunals to the insolvency court, fuelled in no small part by the exponential growth in the number of debtors seeking the protection of an insolvency action.
The collection of debt through the liquidation of a company can become a time-consuming exercise and often results in the total loss of the claim.
We have an outstanding record in tracking down the assets of insolvent companies and negotiating with co-creditors and judicial practitioners/receivers to achieve the best solution possible within the time constraints of the insolvency procedure and which maximises the financial outcome of the liquidation.
We also advise investors interested in participating in the competitive public liquidation proceedings to acquire distressed assets, such as real estate, equipment and machinery.
Key Contacts
Our Relevant Experience
- Advising Futureal Management, one of the leading real estate developers and investors in Central Eastern Europe, in relation to the Parcului project on the acquisition of over 15,000 sq. m. in District 1, Bucharest, one of the main residential areas in the city – valued at EUR 3.7M.
- Assisting local subsidiaries of AEW Europe in connection with litigation and insolvency matters pertaining to the operation and lease of an office building in Bucharest (Victoriei Square – 27,000 sq.m.) and a shopping mall in Targu Mures (51,350 sq.m.).
- Assisting the Intercora Group in connection with litigation and insolvency matters pertaining to the operation and lease of their asset portfolio, which included an insolvency claim against Domo and a civil claim against Proges.
- Assisting Complexul Multifunctional Victoria, a local subsidiary of AEW Europe and owner of the America House Building, in connection with litigation and insolvency matters regarding the operation and lease of an office building in Bucharest (Victoriei Square – 27,000 sq.m.).
- Assisting ERP Targu Mures, a local vehicle of AEW Europe and owner of the Promenada Shopping Mall, in connection with litigation and insolvency matters regarding the operation and lease of a shopping mall in Targu Mures (51,350 sq.m.).
Management / Directors’ liability
Romanian insolvency law provides one of the very few avenues for creditors to pierce the corporate veil.
Subject to certain conditions, usually associated with fraud, the creditors of an insolvent company have the right the trigger the liability of the insolvent company’s shareholders, directors and management.
We are experts in taking all legal measures to accelerate this process and seize the relevant assets to ensure a proper and efficient enforcement and collection process.
We have also successfully assisted clients, both shareholders and directors alike, in having abuse of power claims arising from alleged fraud and triggered by insolvency dismissed.
Key Contacts
Our Relevant Experience
- Assisting local subsidiaries of AEW Europe in connection with litigation and insolvency matters pertaining to the operation and lease of an office building in Bucharest (Victoriei Square – 27,000 sq.m.) and a shopping mall in Targu Mures (51,350 sq.m.).
- Assisting Complexul Multifunctional Victoria, a local subsidiary of AEW Europe and owner of the America House Building, in connection with litigation and insolvency matters regarding the operation and lease of an office building in Bucharest (Victoriei Square – 27,000 sq.m.).
