Romania

The Corona Crisis leads worldwide to critical situations for companies.
In light of this, Digitorney has asked lawyers from various countries specialized in restructuring law for recommendations on what needs to be done and which solutions are at hand to weather the Corona Crisis.
This part of our series focuses on Romania:

 

1) When does a company need to file for insolvency in Romania?

The Romanian Insolvency Law provides that a company must file for its insolvency within 30 days from the date it became insolvent. In this respect, a company is considered insolvent when it does not have enough liquidity to pay its outstanding debt. Also, this status is presumed in case that respective debt is at least 60 days overdue. MORE

2) What liability risks exist for the management in Romania in a corporate crisis?

The directors of Romanian companies are liable not only for damages directly caused to the company, but also for loss of profits. Further, the directors can be liable even for the slightest negligence, as the law provides that they have to perform their obligations with the caution and diligence of a good director. MORE

3) Is there any state aid available for companies in Romania due to the Corona crisis?

The Romanian Government has recently adopted a series of measures to support SMEs and microenterprises in the context of the Covid-19 crisis. It is estimated that the measures below will be granted to maximum number of 40.000 beneficiaries, against a total budget of EUR 161 million. MORE

4) What immediate measures should a Romanian company take if it is affected by the Corona crisis?

The evolution of the current crisis requires fast action from companies affected, their agility and adaptability in navigating this stressful period proving to be essential in the survival of the company. As part of their immediate action plan, affected companies should consider the following: MORE

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