PREVENTIVE AGREEMENT – THE VIABLE ALTERNATIVE TO LAW NO. 85/2006 ON INSOLVENCY PROCEDURE?
Given the economic crisis that Romania is going through and which influenced in a negative manner the activity of economic agents throughout the country, Law no. 381/2009 has been adopted for the implementation of the preventive agreement and ad-hoc mandate, in order to support companies facing econ...
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| Format: | Article |
| Language: | English |
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Nicolae Titulescu University Publishing House
2011-04-01
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| Series: | Challenges of the Knowledge Society |
| Subjects: | |
| Online Access: | http://cks.univnt.ro/uploads/cks_2011_articles/index.php?dir=01_law%2F&download=cks_2011_law_art_029.pdf |
| _version_ | 1818543529493790720 |
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| author | PAULINA DINA |
| author_facet | PAULINA DINA |
| author_sort | PAULINA DINA |
| collection | DOAJ |
| description | Given the economic crisis that Romania is going through and which influenced in a negative manner the activity of economic agents throughout the country, Law no. 381/2009 has been adopted for the implementation of the preventive agreement and ad-hoc mandate, in order to support companies facing economic difficulties in their activity. Law no. 381/2009 became applicable on January 13, 2010 and it implements, as an alternative to the difficult and time-consuming procedure of insolvency, a contractual mechanism for companies facing difficulties in organizing their activities, outside the insolvency procedure, with limited involvement from the court. This regulation is seen as a solution against the opening of the insolvency procedure. The solution applies especially to small and middle sized companies. The preventive agreement implies a longer deadline for payment liabilities based on a friendly agreement with the creditors. It is a mechanism for avoiding insolvency and it consists of an agreement made between the debtor and the creditors regarding the way in which the debtor, which is in a difficult financial position, will pay all its outstanding debts. The law applies to all legal entities which reorganize a company going through a difficult financial period, without being in insolvency and which are called debtors. Nevertheless, the preventive agreement law still forces us to relate to the notion of insolvency. |
| first_indexed | 2024-12-11T22:36:36Z |
| format | Article |
| id | doaj.art-fce45284fc6042f9a660e4af3af24c37 |
| institution | Directory Open Access Journal |
| issn | 2068-7796 |
| language | English |
| last_indexed | 2024-12-11T22:36:36Z |
| publishDate | 2011-04-01 |
| publisher | Nicolae Titulescu University Publishing House |
| record_format | Article |
| series | Challenges of the Knowledge Society |
| spelling | doaj.art-fce45284fc6042f9a660e4af3af24c372022-12-22T00:47:57ZengNicolae Titulescu University Publishing HouseChallenges of the Knowledge Society2068-77962011-04-011-275281PREVENTIVE AGREEMENT – THE VIABLE ALTERNATIVE TO LAW NO. 85/2006 ON INSOLVENCY PROCEDURE?PAULINA DINAGiven the economic crisis that Romania is going through and which influenced in a negative manner the activity of economic agents throughout the country, Law no. 381/2009 has been adopted for the implementation of the preventive agreement and ad-hoc mandate, in order to support companies facing economic difficulties in their activity. Law no. 381/2009 became applicable on January 13, 2010 and it implements, as an alternative to the difficult and time-consuming procedure of insolvency, a contractual mechanism for companies facing difficulties in organizing their activities, outside the insolvency procedure, with limited involvement from the court. This regulation is seen as a solution against the opening of the insolvency procedure. The solution applies especially to small and middle sized companies. The preventive agreement implies a longer deadline for payment liabilities based on a friendly agreement with the creditors. It is a mechanism for avoiding insolvency and it consists of an agreement made between the debtor and the creditors regarding the way in which the debtor, which is in a difficult financial position, will pay all its outstanding debts. The law applies to all legal entities which reorganize a company going through a difficult financial period, without being in insolvency and which are called debtors. Nevertheless, the preventive agreement law still forces us to relate to the notion of insolvency.http://cks.univnt.ro/uploads/cks_2011_articles/index.php?dir=01_law%2F&download=cks_2011_law_art_029.pdfpreventive agreementad-hoc mandateinsolvency procedurejudicial moratorium |
| spellingShingle | PAULINA DINA PREVENTIVE AGREEMENT – THE VIABLE ALTERNATIVE TO LAW NO. 85/2006 ON INSOLVENCY PROCEDURE? Challenges of the Knowledge Society preventive agreement ad-hoc mandate insolvency procedure judicial moratorium |
| title | PREVENTIVE AGREEMENT – THE VIABLE ALTERNATIVE TO LAW NO. 85/2006 ON INSOLVENCY PROCEDURE? |
| title_full | PREVENTIVE AGREEMENT – THE VIABLE ALTERNATIVE TO LAW NO. 85/2006 ON INSOLVENCY PROCEDURE? |
| title_fullStr | PREVENTIVE AGREEMENT – THE VIABLE ALTERNATIVE TO LAW NO. 85/2006 ON INSOLVENCY PROCEDURE? |
| title_full_unstemmed | PREVENTIVE AGREEMENT – THE VIABLE ALTERNATIVE TO LAW NO. 85/2006 ON INSOLVENCY PROCEDURE? |
| title_short | PREVENTIVE AGREEMENT – THE VIABLE ALTERNATIVE TO LAW NO. 85/2006 ON INSOLVENCY PROCEDURE? |
| title_sort | preventive agreement the viable alternative to law no 85 2006 on insolvency procedure |
| topic | preventive agreement ad-hoc mandate insolvency procedure judicial moratorium |
| url | http://cks.univnt.ro/uploads/cks_2011_articles/index.php?dir=01_law%2F&download=cks_2011_law_art_029.pdf |
| work_keys_str_mv | AT paulinadina preventiveagreementtheviablealternativetolawno852006oninsolvencyprocedure |