Wolf Theiss obtains a favourable decision at the Bucharest Court of Appeal dismissing an annulment claim of allegedly fraudulent acts
Ligia Popescu, Andreea Zvac and Gabriela Patrascan, Wolf Theiss

The litigation team specialized in insolvency proceedings successfully represented a client active in the renewable energy business in relation to a claim seeking the annulment of allegedly fraudulent acts concluded by an insolvent company during the suspect period, pursuant to Article 117 et seq. of the Insolvency Law No 85/2014. The exposure in the case has been of EUR 4.5 million. 

Although initially the Bucharest Tribunal had annulled the contested acts as fraudulent, the recent decision of the Bucharest Court of Appeal reversed the first court's decision and dismissed the action for annulment in its entirety. The case was particularly complex and important, both in terms of the high financial risk and in terms of the legal and practical issues at stake. Given that the debtor company was active in the energy sector, a sustained effort was required to present to the court all relevant aspects of the transactions between the parties, their significance on the relevant market and the relationship between the alleged losses of the insolvent company and the potential losses avoided by both parties by signing the contested acts. The solution will be a landmark of case law on the analysis to be carried out to determine the fraudulent nature of the acts concluded by the insolvent company during the suspect period.

Moreover, prior to the resolution of the case by the Bucharest Court of Appeal, the Wolf Theiss lawyers succeeded to obtain in an interim injunction the suspension of the effects of the Bucharest Tribunal decision until the final resolution of the annulment claim, thus protecting the client by preventing him from paying any amounts to the insolvent company in the framework of a provisional execution. This solution was particularly important for the client because the amounts that would have been paid under the enforcement would have been difficult to recover from an insolvent company lacking both own any assets and any activity.

The final favourable solution obtained in the appeal is due to the pragmatic and efficient litigation strategy developed by the team, based upon their substantial expertise in representing clients in this type of cases and their ability to react promptly to protect the client's interests.

The Wolf Theiss team involved in the management of the project consisted of: Ligia Popescu (Partner), Andreea Zvâc (Counsel) and Gabriela Pătrășcan (Senior Associate).

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