Bankruptcy proceedings (or liquidation) essentially aim at liquidating all of the debtor’s assets with a view to covering its receivables. This is either when the debtor cannot successfully implement a reorganization plan or due to various reasons there is no interest for a restructuring. Duration of such procedure of course is strongly linked to how liquid the debtor’s estate really is.
Our team has handled the bankruptcy of Petromar Resources SRL, Secvision Business Solutions SRL and so on.
In the decision by way of which the debtor is placed into bankruptcy proceedings, the bankruptcy judge shall also pronounce the following: (A) the withdrawal of the debtor’s right to manage its estate; (B) the appointment of the liquidator; (C) the term until the debtor/ judicial administrator has to hand over the management of the debtor’s estate to the liquidator (together with a complete list of all actions performed after the commencement of the proceedings); (D) the notification regarding the commencement of the bankruptcy proceedings; (E) a complete list with all the creditors and their contact details with the indication of all the debts which arose after the commencement of the proceedings.
In case the debtor undergoes bankruptcy after confirmation of a reorganization plan, the creditors will participate in the bankruptcy proceedings with the amounts registered in the reorganization plan less the sums already distributed to them.
Transactions between the confirmation date of the reorganization plan and the commencement of the bankruptcy proceedings are presumed to be fraudulent except when the contracting party proves its good faith (tr. buna credinta) when concluding the transaction. Any gratuitous transactions (tr. acte cu titlu gratuit) are null and void.
As a general rule, liquidation starts once an inventory is completed. The liquidation of the debtor’s estate is performed by the liquidator under the supervision of the bankruptcy judge and of the creditors.
The main goal of the liquidation is to maximize the proceeds from the debtor’s estate. In principle, the sale of the debtor’s assets shall be performed through tender proceedings. However, direct negotiation may be allowed under certain circumstances.
Moneys resulting from liquidation are subject to (partial) distribution to the creditors already during the procedure. At the closing of the liquidation, the final distribution takes place