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.
News from Schoenherr
Briefings from Schoenherr
In a recent decision, the SCCR has ruled on the issue of the irreversibility of the legal effects of registration of transformation in the Czech Commercial Register.
After introducing the ‘sectoral sanctions’ against Russia on 1 August 2014, the sanctions regime was tightened further on 12 September as set out in EC Regulation No 960/2014.