Romania
Introduction - The Romanian Perspective on Restructuring
The Romanian legislative framework, the Italian framework and the French framework contain common elements. As with Italy’s concordato preventivo, Romania has a similar procedure (described in the report as a preventive concordat) together with what is described in this report as an ad-hoc mandate which reflects a similar approach to France. These processes were reformed in 2014. It would seem that the preventive concordat reflects many of the elements of the PRD (Preventive Restructuring Directive 2019/1023) but there are changes which will be made to comply with other elements of the Directive, including changes to the stay. However, as described in the report, the concept of division into classes is not dominant in Romanian insolvency law and so cross class cram down is not an issue. There are nevertheless significant and clearly drawn grounds upon which dissenting creditors can raise an objection to a plan. The concordatul preventiv is included in Annex A to the EIR Recast.