Romania - Restructuring/Insolvency Lawyers & Law Firms - Europe - Chambers and Partners
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Europe Guide

Restructuring/Insolvency — Romania

Overview

The Road Ahead for 2017

Looking back at 2016 and what the year has brought across the insolvency spectrum, we have witnessed a downward trajectory in the number of newly opened insolvencies, a decline by 20% compared to the previous year, on the back of an improvement of the wider economy. The retrospective assessment of 2016 on economic growth is around +4%, as reflected by the liquidation of the distressed assets market.

However, insolvency levels started to increase among high profile companies, due to a lack of viable turnaround options or by succumbing to failure under pressure from creditors. These can have a major social and economic impact. As more and more larger companies are facing distressed situations, the overall value of distressed debt is therefore expected to rise as well. Examples of these are the insolvencies or the submissions of requests to initiate insolvency proceedings of some of the major players in the energy field, such as Electrocentrale București, Regia Autonomă de Distribuție a Energiei Termice București, and Complexul Energetic Hunedoara; employers that together provide over 11,000 jobs. The collapse of these companies has led to significant financial and social losses, despite management efforts to operationally reshape the businesses or to recapitalise them.

A detailed analysis shows that, at the end of the first quarter of 2016, the total outstanding debts from companies experiencing financial distress amounted to around RON 14 billion, and 90,000 jobs were restructured at national level.

Therefore, a trend that is likely to be maintained throughout 2017 is the number of companies that are on the verge of collapse and for which the protection granted by the Insolvency Law becomes a necessity. The causes of this trend are most notably low profit margins and over-borrowing.

Thus, for such fragile companies, any default by a beneficiary might have a significant impact on liquidity and on the ability to meet its debt obligations, keeping the risk of insolvency quite high in certain segments of the market.

In terms of legislation, 2016 was not a year of significant changes. We expect the legislative framework to remain at the same level of predictability. There is no outlook of specific projects that might influence or amend regulations.

However, a noteworthy point is the entry into force of the personal insolvency law which has been further delayed until the end of June 2017. This procedure remains one of the most awaited pieces of legislation of 2017.

National economic forecasts for 2017 predict an economic growth between 3.5% and 4.15%, and analysts of the National Prognosis Commission estimate a rise of 5.2% of the level of the minimum wage, but also an overall increase of the wage for certain categories of employees.

It is expected that the above-mentioned measures sustain the rise in consumer spending registered in recent years and stimulate economic development further in 2017.

This effect may occur, but we cannot anticipate how much this consumption increase will affect the total economic growth, especially in the absence of some necessary investments to increase the production capacity. It is therefore likely that a good proportion of this growth will not be absorbed by the overall economy.

We expect an inflation rate of 2% and a fairly stable course of the RON, which together with the other positive signs of economic improvement will lead to a stable business climate. Obviously, vulnerabilities will continue to exist due to different circumstances that affect industry sectors, for example the energy pricing that is currently a cause of concern among energy traders.

In 2017 Romania is thus projected to see a decrease in the number of companies which enter default but obviously insolvency remains a constant trend, the only differentiator being its pace.

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Nestor Nestor Diculescu Kingston Petersen - Restructuring/Insolvency Department

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Band 1

第一等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Heads of department: Manuela Nestor and Ana Diculescu-Şova
- 6 partners
- 10 other qualified lawyers

What the team is known for Well-resourced department, providing integrated representation in restructuring cases and complex financial projects. Highly knowledgeable about formal insolvency procedures, as well as enforcement proceedings and other related contentious matters. Works closely with the firm's corporate, banking and finance and litigation departments to provide comprehensive advice. Recent highlights include work for major banks.

Strengths One client describes the firm's performance as "very good," adding: "They are some of the best lawyers we have worked with across the board. They are able to go beyond just the technical legal aspects and look from a technical and commercial angle."

Further interviewees confirm: "All of the lawyers are highly qualified and they deliver excellent services."

Work highlights Assisted Blackstone, HIG and AnaCap with a bid for the EUR2.7 billion non-performing loan portfolio of BCR.

Advised Arlynn Limited, Melix Financial Services and Labmex International on the insolvency proceedings of Longevity Construct.

Significant clients ADM, Banca Comercială Română, Azora, Bonhay Investment.

Notable practitioners

Department co-ordinator Ana Diculescu-Şova is well regarded in the market, noted by sources for her experience in contentious matters. In addition to her activity in bankruptcy proceedings, she also handles financial restructurings.

Clients praise Alina Radu's ability to offer a commercial approach. She is experienced in restructuring and refinancing work, with notable activity in the banking and finance sector.

About the Team (content provided by Nestor Nestor Diculescu Kingston Petersen)

Complex, integrated advice combining key elements of  expertise in the corporate, banking & finance and litigation practice areas, and providing the clients with a fresh and business-oriented perspective, practical, time and cost efficient oriented.

A multidisciplinary team, authentically differentiated on the local market through:

  • integrated assistance, including due diligence assessments, for restructuring operations - mergers, de-mergers, transfers of undertakings, externalization of functions; assessment of default situations and feasibility of next steps, including interim protective measures, assistance with structural issues, drafting and negotiations of standstill agreements and finance documentation restructuring
  • representation on any contentious matters, including enforcement proceedings; dispute resolutions regarding objections to the enforcement procedure; insolvency proceedings as well as identification of any possibilities of recovering debt


All of our bank restructuring high profile mandates have been led by a joint team formed by on one side Alina Radu, and Valentin Voinescu as banking partners and on the other side by Emil Bivolaru and Sorina Olaru as litigation partners, which created a strong, consolidated approach particularly useful in setting the most appropriate restructuring strategy with maximum benefits for our clients.





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Zamfirescu Racoți & Partners Attorneys at Law (ZRP) - Restructuring/Insolvency Department

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Band 1

第一等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Head of department: Stan Tirnoveanu
- 2 partners
- 12 other qualified lawyers

What the team is known for Market-leading team with an excellent reputation for complex insolvency cases and ability to handle matters with contentious aspects. In addition to offering numerous dedicated insolvency practitioners within the department, also houses banking expertise. Advises key financial institutions, representing an extensive client base of Romanian and global banks in financial restructuring and reorganisation matters, alongside insolvency work.

Strengths Clients praise the team, describing it as "skilled, experienced and knowledgeable."

Further sources observe the practice to be "very good in cross-border cases."

Work highlights Assisted Tepol with the implementation of its reorganisation procedure.

Represented a consortium of foreign and national banks in a series of disputes relating to the insolvency proceedings of Omilos Oradea.

Significant clients Banca Comercială Română, Piraues Bank Romania, Crédit Agricole, Raiffeisen Bank, BRD Group Société Générale.

Notable practitioners

Head of department Stan Tirnoveanu offers a wealth of experience in insolvency cases within the Romanian market. He is highly recommended for reorganisations, liquidations and insolvency-related disputes. He recently provided representation to the Bank of Cyprus in the insolvency proceedings of Ireland House in order to recover a loan worth more than EUR5 million.

About the Team (content provided by Zamfirescu Racoți & Partners Attorneys at Law (ZRP))

Department profile not yet provided by Zamfirescu Racoți & Partners Attorneys at Law (ZRP). Please see their firm profile.

No Content Provided


Clifford Chance Badea - Restructuring/Insolvency Department

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Band 2

第二等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Head of department: Daniel Badea
- 1 partner
- 9 other qualified lawyers

What the team is known for Well-regarded team with strong capabilities to handle complex domestic and cross-border restructuring and insolvency mandates. Benefits from the support of finance, litigation and corporate experts to provide integrated advice. Works closely with lenders, funds, sponsors and distressed companies in top-end restructuring mandates, including related transactional matters.

Strengths Market commentators note the team's strength in restructuring mandates.

Work highlights Advised Banca Comercială Română on a dispute with an insolvent broker.

Significant clients PBW II Real Estate, CIECH, UniCredit, Convergence Development (Cyprus) Limited.

Notable practitioners

Managing partner Daniel Badea is an active figure in the market, with notable expertise across the range of financial restructuring matters and insolvency cases. He offers interdepartmental advice with an accomplished record in related sectors, such as M&A and capital markets.

Simona Neagu is an experienced litigator, well versed in handling contentious matters stemming from insolvencies. She is able to provide an integrated service with litigious expertise in several fields including construction and corporate law.

About the Team (content provided by Clifford Chance Badea )

Department profile not yet provided by Clifford Chance Badea . Please see their firm profile.

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CMS - Restructuring/Insolvency Department

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Band 2

第二等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Heads of department: Simon Dayes, Gabriel Sidere and Horea Popescu
- 6 partners
- 10 other qualified lawyers

What the team is known for Well versed in advising on substantial regional and cross-border restructuring projects, aided by the firm's extensive office network, with experience of loan sales and distressed M&A alongside restructuring work. Supported by banking and dispute resolution teams to provide dual expertise to large domestic and international companies, and numerous regionally active banks. Also assists with insolvency-related litigation.

Strengths Interviewees praise the team's creative approach: "They are extremely good, and very well respected in regard to restructuring. They think outside the box and are hard-working and effective."

Notable practitioners

Head of international finance Simon Dayes is well versed in financial reorganisation and restructuring matters. He offers notable expertise in energy and real estate projects, for which interviewees highlight his knowledge in banking and finance.

About the Team (content provided by CMS)

Department profile not yet provided by CMS. Please see their firm profile.

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Dragne & Asociatii - Restructuring/Insolvency Department

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Band 2

第二等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Heads of department: Ion Dragne and Stelian Garofil
- 5 partners
- 6 other qualified lawyers

What the team is known for Notably strong in advising financial institutions, companies, creditors and financiers on restructuring and insolvency cases. Experienced in bankruptcy, recovery plans and liquidations in addition to insolvency-related litigation. Often assists clients from the energy, telecoms and banking sectors.

Strengths Clients appreciate the provision of an "ambitious team, comprising reputable lawyers on the Romanian legal market who offer flexibility and experience."

Further sources perceive the team's client-oriented approach as "loyal, respectful and reliable."

Work highlights Advised the Financial Supervisory Authority (ASF) as financial regulator in connection to the financial reorganisation of an insurance company.

Assisted Orange Romania with the insolvency proceedings of one of its debtors, including a claim exceeding EUR12 million.

Significant clients Hidroelectrica, K&S Electric Power Point, Site Tec, NM Development.

Notable practitioners

Clients laud Ion Dragne's experience and "capacity to rapidly establish strategies and to identify solutions in any legal matter." He is a well-respected practitioner who frequently advises multinational corporations, financial institutions, state-owned entities and government agencies. He often assists with insolvency-related disputes as well as investment opportunities. He recently advised Cupru Min SA Abrud on a complex insolvency proceeding.

About the Team (content provided by Dragne & Asociatii)

Department profile not yet provided by Dragne & Asociatii. Please see their firm profile.

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Țuca Zbârcea & Asociații - Restructuring/Insolvency Department

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Band 2

第二等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Heads of department: Ciprian Dragomir, Dorin Petcu and Robert Roşu
- 7 partners
- 13 other qualified lawyers

What the team is known for Prominent firm which offers litigation and out-of-court services on matters of corporate insolvency and restructuring. Works closely with many international and local banks, as well as public and private financially distressed clients in the pharmaceutical, energy, real estate, FMCG and retail sectors. Active on debt restructuring, asset disposal and regularly appointed as receivers in bankruptcy proceedings.

Strengths Clients highlight the team's "impeccable practical and theoretical knowledge."

Work highlights Represented Agroli Group in relation to its voluntary insolvency proceedings.

Represented K&H Bank Zrt in relation to the insolvency proceedings of Bel Rom Cinci.

Significant clients Accession Mezzanine Capital, Bancpost, Banca Comercială Română, Carpatair, Deutsche Bank.

Notable practitioners

Robert Roşu has great experience as an insolvency practitioner, active in debt recovery, as well as enforcement procedures. He provided assistance to BRD Groupe Société Générale with an insolvency procedure for the recovery of receivables valued at approximately EUR21 million.

About the Team (content provided by Țuca Zbârcea & Asociații)

Tuca Zbarcea & Asociatii has significantly developed its bankruptcy/liquidation and insolvency practice over the past few years. Our department comprises lawyers with extensive expertise in debt recovery, bankruptcy and liquidation matters, including certified mediators and insolvency practitioners. As a matter of fact, our team in this area consists of certified insolvency practitioners.

Our services in this area include assistance in relation to debt recovery and appraisal of the best strategy to follow in case of threatened bankruptcy. Most of our mandates consisted of in-depth evaluation of clients’ options for the recovery of receivables, as well as assistance and representation in insolvency proceedings, assessment of the legal feasibility of reorganisation plans, analysis of the judicial reorganisation plans or concrete proposals for termination of fraudulent acts directed at diminishing the debtor’s assets.

Scope of Practice

  • Reorganisation and Judicial Liquidation
  • Voluntary Liquidation

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DLA Piper Dinu SCA - Restructuring/Insolvency Department

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Band 3

第三等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Head of department: Marian Dinu
- 2 partners
- 4 other qualified lawyers

What the team is known for Experienced team able to assist with all aspects of financial restructuring and insolvency projects with the support of its broad international network. Frequently advises distressed companies and assists clients from the banking and real estate sectors. Provides assistance with investigation, litigation and asset recovery issues in multi-jurisdictional cases.

Notable practitioners

Laura Grădinescu advises on a range of restructuring and insolvency processes, with particular activity in liquidations. She is experienced in both in-court and out-of-court proceedings.

About the Team (content provided by DLA Piper Dinu SCA)

Department profile not yet provided by DLA Piper Dinu SCA. Please see their firm profile.

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Kinstellar SCA - Restructuring/Insolvency Department

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Band 3

第三等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Head of department: Bogdan George Bibicu
- 1 partner
- 6 other qualified lawyers

What the team is known for Well-reputed team advising clients through insolvency and bankruptcy proceedings, in addition to restructuring and refinancing work. Acts for several prominent banks, and lists clients from sectors including life sciences and manufacturing in its portfolio. Provides broad expertise in this field, drawing on banking and finance knowledge and ability to assist with cross-border insolvencies.

Work highlights Assisted Agera Pharma with the preservation and recovery of receivables in the insolvency proceedings of Casa Farm.

Advised EBRD on the restructuring of existing loan facilities of ETI European Foods Industries, including amendments to the initial financing terms.

Significant clients FirstFarms, Citibank.

Notable practitioners

Bogdan George Bibicu's recent activity includes an advisory role to EFG Luxembourg on the protection and preservation of receivables relating to Hidroelectrica's insolvency. He is a well-respected restructuring and insolvency practitioner, noted by sources for his finance expertise. He leads the department and often advises international banks and financial institutions.

About the Team (content provided by Kinstellar SCA)

Department profile not yet provided by Kinstellar SCA. Please see their firm profile.

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Mușat & Asociații - Restructuring/Insolvency Department

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Band 3

第三等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Heads of department: Mihai Popa and Ana-Maria Plăcintescu
- 4 partners
- 15 other qualified lawyers

What the team is known for Sizeable team covering a wide range of services, including corporate restructuring and creditor representation in insolvency procedures. Boasts numerous individuals qualified to act as judicial administrators and liquidators, and offers vast experience of litigation cases concerning financial distress and insolvency mandates involving state-owned entities. Acts for clients from a diverse range of sectors including pharmaceuticals, real estate, energy and construction.

Strengths Sources acknowledge the comprehensive support provided by the firm: "They have very good knowledge of the Romanian market and they really are a one-stop shop for legal services, allowing us to receive top-quality advice and representation from highly specialised lawyers on a broad range of matters."

Work highlights Advised Reblens Financial on the bankruptcy procedure of Mechel Service Romania, including the recovery of receivables valued at approximately EUR8.1 million.

Advised Copisa Constructora Pirenaica on the company's insolvency procedure.

Significant clients Transas Marine International, Termoelectrica, Grup 4 Instalaţii, Servicii Energetice Oltenia, Kaufland Romania.

Notable practitioners

Mihai Popa and Ana-Maria Plăcintescu are the key contacts for clients.

About the Team (content provided by Mușat & Asociații)

Department profile not yet provided by Mușat & Asociații. Please see their firm profile.

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PeliFilip - Restructuring/Insolvency Department

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Band 3

第三等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Heads of department: Ioan Dumitrascu, Cătălin Alexandru and Francisc Eduard Peli
- 3 partners
- 8 other qualified lawyers

What the team is known for Solid team with broad expertise in financial restructurings, with strength in the real estate and industrial sectors. Assists national and global financial institutions, funds and companies with additional services on associated litigation cases. Recent activity includes loan sales and bankruptcy proceedings.

Strengths Sources appreciate the responsiveness and commercial viewpoint of the team, reporting: "They take into consideration the views and business issues of the client and are innovative and creative in finding solutions."

Further interviewees note the team's "knowledge and capacity, especially in court."

Work highlights Assisted Romanian Dynamic Property Fund as creditor with a debt restructuring process in excess of EUR3 million.

Advised Banca Transilvania on its acquisition of Volksbank and the subsequent sale of non-performing loan portfolios and arising litigation.

Significant clients ING.

Notable practitioners

Ioan Dumitrascu, Cătălin Alexandru and Francisc Eduard Peli are the key contacts for clients.

About the Team (content provided by PeliFilip)

Department profile not yet provided by PeliFilip. Please see their firm profile.

No Content Provided


Radu Tărăcilă Pădurari Retevoescu SCA in association with Allen & Overy LLP - Restructuring/Insolvency Department

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Band 3

第三等

Chambers Commentary (based on the Chambers research)

What the team is known for Well-established team, experienced in the full spectrum of restructuring and insolvency issues. Often advises international clients, including major financial institutions. Benefits from close co-ordination with Allen & Overy to combine international resources for cross-border cases.

Notable practitioners

Victor Pădurari is a key contact for clients.

About the Team (content provided by Radu Tărăcilă Pădurari Retevoescu SCA in association with Allen & Overy LLP )

Department profile not yet provided by Radu Tărăcilă Pădurari Retevoescu SCA in association with Allen & Overy LLP . Please see their firm profile.

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Schoenherr si Asociatii SCA - Restructuring/Insolvency Department

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Band 3

第三等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Head of department: Sebastian Guţiu
- 1 partner
- 4 other qualified lawyers

What the team is known for Advises a wide roster of clients, notably from the energy, insurance and transport sectors, on an array of insolvency and restructuring mandates. Combines knowledge of the Romanian market with experience of cross-border cases. Involved in a number of large-scale reorganisations and restructurings, acting for debtors, creditors and administrators in a series of procedures.

Strengths Sources value the firm's "strength in Central Europe" and provision of a specialised restructuring and insolvency team.

Notable practitioners

Sebastian Guţiu heads the department and is the key contact for clients.

About the Team (content provided by Schoenherr si Asociatii SCA )

Department profile not yet provided by Schoenherr si Asociatii SCA . Please see their firm profile.

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STOICA & Asociaţii - Restructuring/Insolvency Department

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Band 3

第三等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Head of department: Valeriu Stoica
- 2 partners
- 8 other qualified lawyers

What the team is known for Well known for representing clients in contentious insolvency matters. Assists companies with asset recovery, pre-insolvency solutions and liquidations. Regularly advises local clients from an array of sectors, including banking.

Strengths Interviewees note the provision of a "specialised insolvency department" and highlight the team's litigation capabilities.

Work highlights Advised Suport Colect on the insolvency proceedings of a pharmaceutical company.

Represented Bancpost in the insolvency proceedings of a real estate developer.

Significant clients Ariston Thermo România.

Notable practitioners

Valeriu Stoica heads the department and is the key contact for clients.

About the Team (content provided by STOICA & Asociaţii)

Department profile not yet provided by STOICA & Asociaţii. Please see their firm profile.

No Content Provided


Biriș Goran - Restructuring/Insolvency Department

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Band 4

第四等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Head of department: Raluca Nastase
- 2 partners
- 5 other qualified lawyers

What the team is known for Assists international clients from the banking, energy and real estate sectors. Regularly handles financial reorganisations, bankruptcy proceedings and security enforcements. Active on a number of mandates spanning multiple jurisdictions.

Work highlights Acted as trustee on the insolvency proceedings of Leon Trans.

Assisted Hidroelectrica with its insolvency proceedings.

Significant clients Benevo, San Metal International, Sticom Trading, S&D Pharma, Hortim International.

Notable practitioners

Raluca Nastase heads the department and is the key contact for clients.

About the Team (content provided by Biriș Goran)

Department profile not yet provided by Biriș Goran. Please see their firm profile.

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Dentons - Restructuring/Insolvency Department

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Band 4

第四等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- Head of department: Tiberiu Csaki
- 2 partners
- 4 other qualified lawyers

What the team is known for Enters the rankings following increasing visibility in the market. Advises clients on all aspects of restructuring and insolvency, supported by solid dispute resolution, banking and corporate teams. Well resourced with access to an extensive network of international offices.

Strengths Sources commend the team's approach: "They appear to be well versed in local law and procedure and their responses to queries and updates are always prompt and written in a way that's easy to understand."

Work highlights Advised Prosegur Compañía de Seguridad on the insolvency of its Romanian subsidiaries.

Represented Synthos in insolvency proceedings and related claims.

Notable practitioners

Tiberiu Csaki heads the department and is the key contact for clients.

About the Team (content provided by Dentons)

Department profile not yet provided by Dentons. Please see their firm profile.

No Content Provided


Popovici Nițu Stoica & Asociații - Restructuring/Insolvency Department

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Band 4

第四等

Chambers Commentary (based on the Chambers research)

Basic facts about the department
- 4 partners
- 10 other qualified lawyers

What the team is known for Joins the rankings this year following solid market feedback and increased visibility on insolvency and restructuring proceedings. Advises national and international clients from a diverse range of sectors including finance and real estate. Offers interdisciplinary expertise with banking and finance, tax and corporate teams. Provides additional support in related litigation.

Strengths Clients highlight the high quality of service provided. One source notes: "They are all great specialists in their area of activity. They have sound technical knowledge and are up to date with the latest changes in both Romanian and international legislation."

Further interviewees appreciate that "in addition to their experience and legal and industry knowledge they are very responsive and provide useful and practical advice."

Work highlights Advised Varinak and MNT Healthcare Europe in connection to the insolvency of Onco Card.

Assisted IMMOFINANZ with the insolvency proceedings of Prima Broadcasting Group.

Significant clients KBC Bank Ireland, Volksbank, Erste Group, Auchan, BLOM Bank.

Notable practitioners

Ciprian Donțu is a key contact for clients.

About the Team (content provided by Popovici Nițu Stoica & Asociații)

Our insolvency specialists are always working together with our attorneys from the Banking & Finance, Corporate & Commercial, Litigation & Arbitration and Tax so that to provide the most appropriate solutions for the creditors, insolvent companies and/or their management bodies, and for investors.

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Overview

The Road Ahead for 2017

Looking back at 2016 and what the year has brought across the insolvency spectrum, we have witnessed a downward trajectory in the number of newly opened insolvencies, a decline by 20% compared to the previous year, on the back of an improvement of the wider economy. The retrospective assessment of 2016 on economic growth is around +4%, as reflected by the liquidation of the distressed assets market.

However, insolvency levels started to increase among high profile companies, due to a lack of viable turnaround options or by succumbing to failure under pressure from creditors. These can have a major social and economic impact. As more and more larger companies are facing distressed situations, the overall value of distressed debt is therefore expected to rise as well. Examples of these are the insolvencies or the submissions of requests to initiate insolvency proceedings of some of the major players in the energy field, such as Electrocentrale București, Regia Autonomă de Distribuție a Energiei Termice București, and Complexul Energetic Hunedoara; employers that together provide over 11,000 jobs. The collapse of these companies has led to significant financial and social losses, despite management efforts to operationally reshape the businesses or to recapitalise them.

A detailed analysis shows that, at the end of the first quarter of 2016, the total outstanding debts from companies experiencing financial distress amounted to around RON 14 billion, and 90,000 jobs were restructured at national level.

Therefore, a trend that is likely to be maintained throughout 2017 is the number of companies that are on the verge of collapse and for which the protection granted by the Insolvency Law becomes a necessity. The causes of this trend are most notably low profit margins and over-borrowing.

Thus, for such fragile companies, any default by a beneficiary might have a significant impact on liquidity and on the ability to meet its debt obligations, keeping the risk of insolvency quite high in certain segments of the market.

In terms of legislation, 2016 was not a year of significant changes. We expect the legislative framework to remain at the same level of predictability. There is no outlook of specific projects that might influence or amend regulations.

However, a noteworthy point is the entry into force of the personal insolvency law which has been further delayed until the end of June 2017. This procedure remains one of the most awaited pieces of legislation of 2017.

National economic forecasts for 2017 predict an economic growth between 3.5% and 4.15%, and analysts of the National Prognosis Commission estimate a rise of 5.2% of the level of the minimum wage, but also an overall increase of the wage for certain categories of employees.

It is expected that the above-mentioned measures sustain the rise in consumer spending registered in recent years and stimulate economic development further in 2017.

This effect may occur, but we cannot anticipate how much this consumption increase will affect the total economic growth, especially in the absence of some necessary investments to increase the production capacity. It is therefore likely that a good proportion of this growth will not be absorbed by the overall economy.

We expect an inflation rate of 2% and a fairly stable course of the RON, which together with the other positive signs of economic improvement will lead to a stable business climate. Obviously, vulnerabilities will continue to exist due to different circumstances that affect industry sectors, for example the energy pricing that is currently a cause of concern among energy traders.

In 2017 Romania is thus projected to see a decrease in the number of companies which enter default but obviously insolvency remains a constant trend, the only differentiator being its pace.

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Eminent Practitioner

Clifford Chance Badea

From the Chambers Europe guide

Managing partner Daniel Badea is an active figure in the market, with notable expertise across the range of financial restructuring matters and insolvency cases. He offers interdepartmental advice with an accomplished record in related sectors, such as M&A and capital markets.

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Eminent Practitioner

Ana Diculescu-Şova

Nestor Nestor Diculescu Kingston Petersen

From the Chambers Europe guide

Department co-ordinator Ana Diculescu-Şova is well regarded in the market, noted by sources for her experience in contentious matters. In addition to her activity in bankruptcy proceedings, she also handles financial restructurings.

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Band 1

Piperea & Asociaţii

From the Chambers Europe guide

Gheorghe Piperea of Piperea & Asociaţii remains a leader in restructuring and insolvency law. He is praised for his strategic approach to negotiations, and is regularly appointed as the practitioner overseeing insolvency proceedings. Sources say: "He is very tactical and articulate with a lot of know-how."

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Band 1

Zamfirescu Racoți & Partners Attorneys at Law (ZRP)

From the Chambers Europe guide

Head of department Stan Tirnoveanu offers a wealth of experience in insolvency cases within the Romanian market. He is highly recommended for reorganisations, liquidations and insolvency-related disputes. He recently provided representation to the Bank of Cyprus in the insolvency proceedings of Ireland House in order to recover a loan worth more than EUR5 million.

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Band 2

Dragne & Asociatii

From the Chambers Europe guide

Clients laud Ion Dragne's experience and "capacity to rapidly establish strategies and to identify solutions in any legal matter." He is a well-respected practitioner who frequently advises multinational corporations, financial institutions, state-owned entities and government agencies. He often assists with insolvency-related disputes as well as investment opportunities. He recently advised Cupru Min SA Abrud on a complex insolvency proceeding.

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Band 2

Țuca Zbârcea & Asociații

From the Chambers Europe guide

Robert Roşu has great experience as an insolvency practitioner, active in debt recovery, as well as enforcement procedures. He provided assistance to BRD Groupe Société Générale with an insolvency procedure for the recovery of receivables valued at approximately EUR21 million.

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Band 3

Bogdan George Bibicu

Kinstellar SCA

From the Chambers Europe guide

Bogdan George Bibicu's recent activity includes an advisory role to EFG Luxembourg on the protection and preservation of receivables relating to Hidroelectrica's insolvency. He is a well-respected restructuring and insolvency practitioner, noted by sources for his finance expertise. He leads the department and often advises international banks and financial institutions.

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Band 3

CMS

From the Chambers Europe guide

Head of international finance Simon Dayes is well versed in financial reorganisation and restructuring matters. He offers notable expertise in energy and real estate projects, for which interviewees highlight his knowledge in banking and finance.

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Band 3

Laura Grădinescu

DLA Piper Dinu SCA

From the Chambers Europe guide

Laura Grădinescu advises on a range of restructuring and insolvency processes, with particular activity in liquidations. She is experienced in both in-court and out-of-court proceedings.

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Band 3

Clifford Chance Badea

From the Chambers Europe guide

Simona Neagu is an experienced litigator, well versed in handling contentious matters stemming from insolvencies. She is able to provide an integrated service with litigious expertise in several fields including construction and corporate law.

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Band 3

Nestor Nestor Diculescu Kingston Petersen

From the Chambers Europe guide

Clients praise Alina Radu's ability to offer a commercial approach. She is experienced in restructuring and refinancing work, with notable activity in the banking and finance sector.

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