Romania: termination of ongoing contracts
By Emeric Domokoș-Hancu
Many questions arise when a contractual partner enters into insolvency. One question is: what happens with the debtor’s ongoing contracts when the insolvency starts? Are they maintained or terminated?
One of the main principles governing insolvency proceedings states that the debtor’s reorganisation should be sought before bankruptcy. To this end, the Romanian Insolvency Law (RIL) provides a series of articles supporting the debtor’s potential reorganisation.
The first paragraph of article 86 RIL provides that all of the debtor’s ongoing contracts are maintained following the start of the insolvency procedure, whereas all contractual clauses terminating contracts due to the start of insolvency procedure are null and void. On the other hand, based on the same article, the debtor’s judicial administrator may terminate ongoing contracts to maximise the debtor’s estate…
Click on the link below to read the rest of the Schoenherr briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Schoenherr
Briefings from Schoenherr
Decision will affect other international data transfer concepts, such as Standard Contractual Clauses.
Banks may now structure financial transactions for Bulgarian clients by using offshore SPVs.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work