The Government adopted the draft of insovency Emergency Ordinance

Newsroom 28/09/2018 | 06:56

The Government adopted yesterday the draft Emergency Ordinance for amending and completing some normative acts in the field of insolvency .

According to Eugen Teodorovici, the Ministry of Finance, ANAF will have a clear procedure, as when the law says it has to do certain things, to argue very clearly the two variants. If it makes a decision, ask for a company’s bankruptcy, why it does it when it does not apply the measure, why it does not, why it proposes to convert some of the receivables, what is the economic reason, etc.

The new Emergency Ordinance states that there are two possibilities for companies in financial trouble, namely the conversion of claims into shares and the sale of those shares. On the other hand the state can delete the part of receivables up to 50 percent.

”These operations can not be cumulated, and those companies in a state of insolvency have a chance, with the cutting off of receivables, to recover, only if the company is likely to be viable in the economic environment. The state can recover from the debt of RON 63 billion, ”the Finance Minister said.

Teodorovici claimed that there is no European normative act that has been violated and the the Competition Council has been involved in discussions.

”There is no discrimination whatsoever, because the state is at the same level as all creditors at the credential table. to convert all claims into shares. There are certain companies, some companies of interest, ”Teodorovici also pointed out.

He also said that the main changes in the project concerned the increase of the responsibility of the judicial administrator by monitoring the debtor’s patrimony operations, accountability of the debtor in the management of the activity and payment of the debts to the state budget by making the opening of the insolvency proceedings subject to a percentage of the receivables budget, rejected the request to open the procedure if ANAF notification was issued.

The ordinance states that the judicial administrator will have 30 days to analyze payment claims incurred subsequent to the date of the opening of proceedings, the tax inspection of insolvency taxpayers will be carried out only if there is a fiscal risk of not declaring tax liabilities.

The draft also provides for admission to credentials and tax receivables ascertained by a taxed administrative act until the finalization of the litigation, the introduction of the possibility of converting the budgetary receivables into shares, the settlement within 30 days of the bankruptcy claim, the introduction of the possibility of assignment of receivables due to the establishment of the incompatibility of practitioners to be concurrent and the administering of a liquidator to a debtor and a creditor thereof.

The Ordinance could help a number of businessmen escape the state debts of the companies they control, through the state’s entry into the shareholders, in a minority position. Thus, the state, which is now second to the creditor mass in debt recovery, after employees, may no longer recover anything.

Analysts say that the decision creates the possibility to encourage such behaviors.

The project of the Emergy Ordinance can be read here.

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