Bankruptcy law modifications

State secretary within the Justice Ministry Cristina Tarcea on Monday said Law 64/1995 on reorganisation and judicial liquidation will be modified in order to make proceedings simpler and speedier. “A law draft modifying Law 64, among others, was debated by the Government for the first time last week. The draft is intended to reduce the duration of the procedures and create a balance between the liquidation and reorganisation procedures,” Cristina Tarcea said during the “Insolvency – a global issue” seminar organised by Piata Financiara (Financial Market). Furthermore, the Justice Ministry official says reducing the bail a creditor has to deposit when filing for the bankruptcy of a debtor, which may go up to 30% of the receivable, is also set for debate.
Another provision to be introduced in the new normative act is the possibility to have debtors go bankrupt without having to go through reorganisation first, if their situation does not allow for such a step to be taken. ZF