Insolvency – recent amendments, August 2020

The primary legislation governing insolvency and restructuring proceedings is Law 85/2014 on preventing insolvency and insolvency proceedings (the “Insolvency Law“).

The Insolvency Law has been amended on October 2, 2018 by Government Emergency Ordinance no. 88/2018 for amending and supplementing regulations on insolvency (the “G.E.O. no. 88/2018“).

One of the main changes brought by G.E.O. no. 88/2018 was represented by the prerogative of the creditors owning receivables born during the insolvency proceedings and due for more than 60 days to initiate the enforcement procedure against the insolvent debtor, which severely disregards the very principles and protection ensured by the Insolvency Law.

Recently, on July 11, 2020, Law no. 113/2020 on the approval of G.E.O. no. 88/20203 (the “Law no. 113/2020“) brought several amendments detailed herein.