Prerequisites for the Recovery of Companies in Economic Difficulty by Concluding Agreements with Relevant Creditors

Insolvency prevention procedures have recently been reformed, in the context of aligning national legislation with the European requirements. To ensure an effective chance of recovery of viable debtors, more accessible and coherent out-of-court frameworks have been created. The restructuring agreement procedure gives distressed debtors the chance to restructure their debts, by means of an agreement with the relevant creditors in order to avoid insolvency. The initiative to make the agreement rests exclusively with the debtor, the law expanding the scope of those entitled to apply for this remedy. The attestation of the state of difficulty is made on objective grounds and not on simple presumptions, as a result of an assessment carried out by an insolvency practitioner and concretized in a report. The restructuring agreement is drawn up with the support of the restructuring administrator, who will ensure that its structure contains the mandatory elements stated by law. The approval of the agreement, negotiated in advance, is subject to the vote of the creditors whose claims are affected, according to the category to which they belong. The confirmation of the restructuring agreement by the syndic judge is carried out in a non-contentious procedure, with a legality control being carried out.