Among the issues financiers must deal with one must also count the impact of the insolvency procedure over ongoing lease agreements. Many lessees, who find it hard to maintain a valid cash flow, look for the protection granted to them by the Insolvency Law no. 85/2014 and subsequently attempt to restructure their activity and schedule the payment of their debts. ...more »

by Georgiana Singurel and Alexandru Lascu, Reff & Associates, member of Deloitte Legal  The legal framework governing public private partnerships and concessions of works and services was significantly reshaped in 2016. In this respect, in May 2016 the new legislative package on public procurement and concession of works and services was enacted, replacing the previous regulations, including former PPP Law no. 178/2010. Also, in December 2016 the new PPP Law was adopted....more »

According to the most recent survey compiled by Euler Hermes, Romania is among the first ten countries in Europe in respect of the companies which entered into insolvency proceedings in 2015. The first positions are occupied by France with over 63.000 registered insolvency cases, Hungary with over 35.000, Germany with around 23.000, Great Britain, Italy, Turkey and Russia. Of all the 23 countries under scrutiny, Greece is on the last place with only 362 insolvency cases declared in 2015. ...more »

Even though the Romanian banking system as we know was not critically endangered and overexposed to sub-prime assets, still it is difficult to calculate how much of the loan volume is healthy. The shift of banking activity from giving loans to calling in the lent money and restructuring bad credit is an ongoing process even in 2016. In a market that is still posting impressive profitability results, banks are still working on figuring out how to keep those profitability margins in a shrinking base of eligible clients....more »

Romania’s Parliament has enacted (not without much debate) Law no. 170/2016 on activity specific taxes, cracking down on Horeca tax evasion by imposing a new flat tax on bar, restaurant, catering and hotel activities. Starting January 1, 2017, such businesses will pay a tax calculated irrespective of the volume of income and expenses, but which is determined based on a mix of zoning, seasonal and surface area parameters....more »

Lawyers have to face a reality that clients these days don’t just hand over a case and expect the lawyer to do the job, get the fee and move on.  Clients changed. Their demand for legal services is now undergoing important transformation, reshaping the fundamentals of a profession traditionally adverse to changes. This puts pressure on managers, whose main objective is to point the sail in the right direction, identifying trends early and often, foreseeing the evolution for years ahead. Unless they find the right answer, the harsh reality will mean that some firms will go bust....more »

Arbitration-friendly jurisdiction   In Romania, courts of law and arbitral tribunals recognize as a rule the legally binding effects of arbitration clauses and the entailing jurisdiction bestowed upon the arbitral tribunal. This is mainly the result of an arbitration-friendly national legal framework (namely, Sections IV and VII sub-section IV of the Civil Procedure Code in force as of February 15, 2013) and arbitration-friendly court practice. Parties may choose arbitration as dispute settlement method both before and after the occurrence of the dispute. ...more »

Covered bonds bring several benefits for both issuers and investors – the possibility of obtaining high credit rankings and ensuring access to a large pool of potential investors (from the issuers' point of view), more accessible investment thr...more »

Competition investigations are getting ever more complex and interconnected, as more and more jurisdictions consolidate their regulatory framework, and related authorities work closer together at international level. As a result, companies see greater risks and regulatory requirements. The most recent Global Antitrust Trends report published by Clifford Chance identifies the main competition-related topics for 2016, based on sector-by-sector analysis and multi jurisdictional statistics....more »

Author: Emeric Domokos-Hancu, Partner Schoenherr si AsociatiiCENTRE OF MAIN INTERESTSAs a general rule, insolvency proceedings fall under the jurisdiction of the national courts in the state where the debtor's head office is registered ("State o...more »