UPLR says insolvency legislative change could lead to blocked proceedings

Newsroom 20/09/2018 | 10:37

The Liberal Professions Union of Romania (UPLR) considers that the draft of Emergency Ordinance of the Government on the modification and completion of some normative acts, mainly aimed at amending Law no. 85/2014, identifying in the content of this draft rules that would lead to the blocking of insolvency proceedings.

From the project analysis, the UPLR identified point 7 introducing a new paragraph to art. 61 of Law no. 85/2014, which, if approved in this form, will cause judiciary administrators to be unable to designate specialists, which will lead to the blocking of the procedure.

The article in the GEO project to which we refer is the following: “(2) The following shall not be designated under par. (1) those persons who are in a contractual or affiliate relationship as defined in the Fiscal Code with the court administrator, the liquidator, the debtor in insolvency or any of the creditors. “

Taking into account the specificities of these professions: lawyers, accountants, authorized valuers, archive firms or other specialists, their client portfolios often include the Romanian banking financial institutions, which are also the main creditors of companies in insolvency proceedings.

Considering that the liberal professions respect the principles of independence through codes of ethics in order to avoid the blockage, we propose that this paragraph be deleted and the limitations to be determined in each case, the specialists being obliged to declare independence and potential conflicts of interest.