The first few months of this year came with a 20% decline in the number of new insolvencies, although banks and entrepreneurs continue to have daily meetings seeking to reach common ground over debts, amid problems still facing markets such as trade or real estate.
However, after two years of crisis, consultants, entrepreneurs and banks have reached the conclusion that resolving issues quickly is the best way, despite the law allowing a company to reorganise its operations in a maximum of four years. This was one of the conclusions of the seminar "Will the string of insolvencies end in 2011?," organised by Ziarul Financiar in partnership with Casa de Insolvenţă Transilvania (CITR) and law firm NNDKP (Nestor).
"Judicial administrators started to contact creditors and to analyse the situation in the first week, so that at the first meeting after insolvency proceedings began, a mini-strategy could already be proposed. The entire reorganisation takes place in the first six months, when the toughest measures are taken," said Andrei Cionca, managing partner of CITR.
Cionca says he is hoping most big companies whose reorganisation he is handling will manage to avoid bankruptcy and that it is preferable for banks to agree that debts be converted into shares rather than erasing or cutting the debts, because in this case creditors tend to lose confidence.
The first few months of this year came with a 20% decline in the number of new insolvencies, although banks and entrepreneurs continue to have daily meetings seeking to reach common ground over debts, amid problems still facing markets such as trade or real estate.
However, after two years of crisis, consultants, entrepreneurs and banks have reached the conclusion that resolving issues quickly is the best way, despite the law allowing a company to reorganise its operations in a maximum of four ye
