On the few examples of successful company debt restructuring,bankers and entrepreneurs have now turned into adversaries, andover-indebted companies are taking their problems to a point wheretheir entering bankruptcy becomes inevitable.
"We are in a vicious circle, as a system. The too few successfulrestructuring stories are not encouraging us. Maybe morerestructuring stories to be talked about would be helpful," saidBogdan Olteanu, NBR vice-governor in charge of the legal departmentof the institution, during the "Temporary stock ownership bylenders - a way of restructuring economic operators" seminarorganised by the central bank.
So far, only the restructuring of Flanco retailer, which wentinsolvent last spring, was presented publicly.
At present, only 5% of the companies in default come to implement afinancial turnaround plan, while the rest go directly towardbankruptcy, says Arin Stănescu, chairman of the National Union ofRomania's Insolvency Practitioners. At present, over 20,000insolvency cases are open.
"The number of insolvencies climbed in 2010 and it is likely torise further in 2011. It is not earlier than 2012 that the numberof insolvency cases will go down, once the economy recovers,"Stănescu stated.
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