Law firm Nestor Nestor Diculescu Kingston Petersen (NNDKP) andCasa de Insolventa Transilvania (Transilvania Insolvency Firm)established a permanent partnership to strengthen their position onan insolvency and corporate restructuring market that skyrocketedin 2009 and will continue to generate contracts for consultingcompanies in the coming years.
"In the first half of this year at least, constructions andretail will continue to plunge, at a faster rate than before. Lastyear construction companies had older projects, but they werecompleted and no new ones were started. Unemployment is on therise, which means some people will not have the available resourcesto buy, so retail sales will not be able to grow, either," explainsIon Nestor, referring to two of the sectors that generated thehighest number of insolvencies last year.
Flanco, Leonardo, and PIC in retail, Mivan Kier and Ozer in theconstruction sector are just a few of the insolvency cases thatkept consultants busy and shook investors' trust to a certaindegree.
Casa de Insolventa Transilvania, which has 60 employees of whom15 are insolvency practitioners, was designated to restructure aseries of major insolvent companies, such as Leonardo, constructionmaterials distributor Direct, Cristi Borcea's charcuterie businessCrimbo Prod Carn, and electronics & home appliances retailerFlanco.
The two companies established joint professional andadministrative committees and will have marketing and communicationactivities within the same group. NNDKP has a litigation departmentconsisting of 29 lawyers, some of whom are specialised ininsolvency.
"As long as the economic trend continues to be a downward one,there will be further cases of insolvency. There are still businessowners who dream of unjustified prices. We opened an office inBucharest in order to have better coverage of Romania, and I thinkthis will be the company's command centre," explains Andrei Cionca,partner with Casa de Insolventa Transilvania (CITR).
Last year saw over 20,000 insolvency cases, with most of thesecompanies headed towards bankruptcy. Only part of big companieswill seek to reorganise by restructuring their businesses andthrough significant capital injections.
NNDKP is one of the largest law firms on the Romanian market,with 115 lawyers and almost 15 million euros in revenues in 2008.Casa de Insolventa Transilvania handled 150 insolvency cases lastyear, with overall assets worth 200 million euros.
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