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Cross-border insolvency proceedings – new rules

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Starting 26.06.2017 the new rules facilitating cross-border insolvency proceedings entered into force. These new rules are provided by Regulation (EU) 2015/848 of the European Parliament and of the Council.

The new rules will ensure an effective and efficient cross-border debt recovery. They focus on resolving the conflicts of jurisdiction and laws in cross-border insolvency proceedings so that will make it easier for businesses to get restructured and for creditors to get their money back.

The key features of the new rules regarding the cross-border insolvency

The main issues solved by this Regulation are:

  • group insolvency proceedings;
  • avoidance of the secondary proceedings;
  • avoidance of the bankruptcy tourism;
  • an EU-wide interconnection of electronic national insolvency registers.

This update of the regulation of the cross-border insolvency proceedings was necessary because certain modern and efficient types of national restructuring proceedings were not covered by the old set of rules.

 

If you want to be constantly informed about the relevant legislative updates and projects, please contact us here.

New regulations in real estate

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Real estate market growth brings new rules for building reception

Lately, the real estate market has grown. Existing constructions are selling rapidly and investors have begun new residential projects. In this context, it is good to know what changes have occurred with regard to building reception.

The Romanian Government has approved the changing of H.G. no. 273/1994 regarding the reception of the construction works and related installations.

According to the new provisions the reception commission can no longer recommend postponing the reception but only admitting or rejecting the reception.

The new regulations do not apply to constructions for which the final reception is in progress when the new regulations enters into force.

However, the commission make the final reception according to the new regulations if previously  was made a reception with objections.

The recommendation below are very important!

The Reception Commission issues a decision that is not just a recommendation. Within 3 days the investor endorses the admission or rejection of the reception and signs the minutes at the end of the works.

If you are the investor but do not own the property, you must deliver to the owner the received construction.

Please note that you can’t use the building if the commission rejects the reception. In order to use the building you must make all the necessary remedies. Until then, you must put the building in a state of conservation by your care and expense.

If you are the the real estate owner you must organize the final reception within 10 days after the expiration of the warranty period.

European Account Preservation Order (E.A.P.O.) – new procedure to facilitate cross-border debt recovery in civil and commercial matters

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Starting this year, debt recovery is faster, cheaper and more efficient with this new procedure for obtaining an European Account Preservation Order (E.A.P.O.).

This procedure is an additional and optional tool that the creditor can use for debt recovery. According to this Regulation – (EU) No 655/2014 – which applies starting the 18th of January 2017, the creditor is entitled to obtain a E.A.P.O. for preventing the subsequent enforcement of the creditor’s claim from being jeopardized through the transfer or withdrawal of funds up to the amount specified in the Order which are held by the debtor or on his behalf in a bank account maintained in a Member State.

This regulation applies to pecuniary claims in civil and commercial matters in cross-border cases and it does not extend, in particular, to revenue, customs or administrative matters or to the liability of the State for acts and omissions in the exercise of State authority.