Danila Petre & Asociatii: Insolvency is not always the best solution

Many distressed firms rushed to file for insolvency even though they did not need to, because they did not carefully evaluate their situation, states Cristian Petre, a senior partner with Danila Petre & Asociatii law firm, a major player in the field of insolvency. Last year, the law firm saw the number of insolvency cases rise 3-4 times, a reason why it plans to expand to several major cities of the country from just one office in Bucharest at present. "Insolvency is not always the best solution, there are cases when companies filed for insolvency even though they did not have to. The success of this procedure varies from client to client and depends on the relations with their debtors. An insolvency case may take one to three years," Petre said. Insolvency cases last year brought more than half of Danila Petre & Asociatii's revenues.

Petre did not disclose the value of 2009 turnover, but specified it climbed by 50%.