Consultants in the field hope that the high number of voluntaryinsolvencies will result in an increase in the number of successfulstreamlining processes.
"The most important factor for a company that went insolvent is tofind streams of financing - fresh money, to be able to hope for asuccessful reorganisation. This can happen by finding an investmentfund, a financial institution or by selling part of the assets. Aninsolvent company cannot survive on its core business alone,because if it could, it would not have filed for insolvency in thefirst place. Companies need to continue operations but at the sametime show how they will pay their debt," said Arin Stanescu,managing partner of Stanescu MIlos Dumitru si Asociatii andchairman of the National Union of Insolvency Practitioners ofRomania (UNPIR).
The low number of reorganisation cases accepted by creditors, about450 out of more than 20,000 pending in courts by mid this year,cast a bad image on companies covered by Law 85/2006 (regulatinginsolvency), with the procedure associated in most cases withbankruptcy.
Things have changed somewhat this year, however, so that manycompanies are resorting to this step as a temporary protectionmeasure against creditor pressure.
"We hope to see the percentage of successful reorganisationprocesses increase. The signal we are getting now is that companiesare really trying it, and I mean big companies here.Reorganisation, however, depends on other factors, as well, such asthe state of the economy. Because of this, investors are stillreluctant, despite the fact that some businesses seem promising,"says Geanina Oancea, senior manager of BDO Conti Insolvency,involved in such cases as Mivan Kier construction company orCuprom.
Major companies with thousands of employees and hundreds ofmillions of euros in business such as Leonardo, SPAR, Flanco,Flamingo, PIC, Mondex and many other real estate and constructioncompanies have filed for insolvency on their own this year afterthey failed to pay their credits and could not reach an agreementfor an amicable solution.
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