International Insolvency – Romania – Gheorghe Piperea

(i) SCA Piperea și asociații

“Piperea și asociații” is the leader in the field of legal assistance and litigation involving or referring to insolvency. We provide assistance and representation for both debtors and creditors. Additionally, we offer assistance and representation for the judicial administrator/liquidator (receiver/trustee).

Regarding debtors – we draft, negotiate, and secure confirmation of the reorganization plan in front of the syndic judge., We also provide comprehensive assistance in meticulously organizing creditors’ committees and assemblies, addressing disputes related to the actions and decisions of the receiver/trustee, and mounting a robust defence against the numerous claims and disputes of creditors, among other services.

Regarding creditors – we draft and pursue claims and contestations, including actions related to directors’ liabilities or claw-back actions. We provide assistance, representation, and negotiation services in these matters and all kinds of insolvency issues.

Our strength derives from both our extensive experience in the field, spanning over 22 years, and our team of highly qualified specialized lawyers. Additionally, our team is a leader in authoring handbooks and specialized articles in the field of insolvency.

(ii) RomInsolv SPRL

RomInsolv is one of the most renowned professional teams in the field of insolvency, having served as a receiver for over 500 debtors, including two of the largest insolvent companies in Romania: Oltchim Rm Vâlcea (with a total debt of 830 million euros) and Radet Bucharest (with a total debt of 800 million euros) We have successfully saved businesses and paid decent percentages of outstanding receivables to creditors, even in hostile conditions and, at times, in survival mode. Our determination and success are a result of our exceptional team of professionals and the synergies we share with Piperea și Asociații.

Business reviews are crucial. The best way to protect your business and maintain its health is to stay informed, make rational decisions, and avoid reacting impulsively. When you find yourself in survival mode, it’s akin to the prisoner’s dilemma – you should cooperate based on reliable information to safely break free from the constraints.

In our practice, the most challenging areas of insolvency have been the termination or significant modification of labour contracts, as these contracts often provide the primary source of income and support for individuals and their families. Additionally, class actions, such as those related to directors’ liabilities and clawback actions, have also posed significant challenges.

Food industry, furniture industry, construction, commodities trade, industrial maintenance, transportation, utilities supplies.

Our activities are primarily focused in the Romanian jurisdiction. However, we engage in cooperative activities and networking in various other countries, including Germany, the Netherlands, the UK, France, Italy, Greece, Hungary, the Czech Republic, and Bulgaria. We often serve as subcontractors, working with other professionals such as receivers, mandataires judiciaires, and rechtanwalts, while also providing specialized expertise in Romanian and European insolvency law and practice.

The future of the FinTech industry is subject to various factors and uncertainties. While FinTech has shown significant growth and innovation in recent years, it has also experienced many failures until now (Wirecard, Bankman Fried, Greensill, Silicon Valley Bank being the worst examples). Additionally, there are challenges and potential shifts ahead, such as the potential rise of central bank digital currency (CBDC). The industry’s ability to adapt, innovate, and address regulatory concerns will play a significant role in shaping its future.

In the field of insolvency, financial difficulties, and crisis management, the multi-layered crisis was somehow beneficial for us. We had plenty of work to do and we gained a lot of new experience. The only concern is that if the prolonged and consecutive crisis continues, it may hinder money circulation, making invoice payments nearly impossible, and consequently, the whole economy will collapse and the mother of all crises would come.

On the contrary, the pandemic has accelerated the growth of the digital economy, and this is not necessarily good news. The digital economy often entails increased control and surveillance, serving as a gateway to potential totalitarianism and the restriction of normal commerce and cultural exchanges.

We utilize proper communication tools, NDAs (Non-Disclosure Agreements), conduct prior checks on clients and third parties, and occasionally employ forensic detective searches. These measures enable us to gain a comprehensive understanding of our partners and the third parties directly and indirectly involved.

There will undoubtedly be a significant increase in both the volume and value of insolvency cases. This can be attributed to several factors, including the impact of the ongoing pandemic, the social and economic policies implemented in response to it, the unprecedented borrowing by some states under the ‘whatever it takes’ approach, prolonged conflicts, misguided ecological policies, immigration trends, and heightened competition from China and India.