Romanian investors call for tougher insolvency approval criteria

Ovidiu Posirca 27/02/2018 | 14:24

Cristian Parvan, the president of the Trade union of Romanian Investors (PIAROM), says that in the economy there are some 200,000 companies in different stages of the insolvency procedure, while another 260,000 firms have a negative capital below the legal requirements.

Parvan said that PIAROM calls for a hike in the receivables limit from which the insolvency procedure can be initiated. At present, the threshold stands at RON 40,000, which is less than EUR 10,000.

Get practical insights and applied solutions to the latest fiscal & legal developments and find out how to make the most out of them at the Tax & Law Conference, on March 13th.

He added there is also an issue with shareholders that finance the company for years and end up as the biggest creditors when their company files for insolvency.

“Then, one of the proposals is that before the start of the insolvency, this shareholder or the shareholders that borrowed money to the company for years and are among the biggest creditors to have their debts converted into shares,” said Parvan, according to Agerpres newswire.

The PIAROM head went on to say that the legislation should accommodate additional steps before the start of the insolvency procedure such as the mediation between creditors and companies.

BR Magazine | Latest Issue

Download PDF or read online: December 2022 Issue | Business Review Magazine

The December 2022 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “Xclusiverse: Going Beyond the Traditional Ways of Doing Business.”
Ovidiu Posirca | 19/12/2022 | 18:45

    You will receive a download link for the latest issue of Business Review Magazine in PDF format, based on the completion of the form below.

    I agree with the Privacy policy of
    I agree with the storage and handling of my data by
    Advertisement Advertisement
    Close ×

    We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

    Accept & continue