On July 7th, 2020, took place the opening meeting of the Early Warning Tools and Preventive Restructuring frameworks project, funded by the EU through the Structural Reform Support Program (SRSP) and implemented in cooperation with the European Commission.
The project aims to support the Ministry of Justice in transposing the Directive 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring and insolvency.
The European directive and, implicitly, the national legislative and administrative transposition measures will contribute to the creation of a more efficient, accessible and friendly pre-insolvency restructuring system, which will allow debtors to detect their financial difficulties early and to take timely and appropriate recovery measures while benefiting from specialized assistance.
The new legislation aims to contribute to a change in the mentality and business culture of both entrepreneurs and of those called to finance or otherwise support the revitalization of a business in difficulty. At the same time, these measures will lead to increased chances for viable enterprises to continue their activity, to prevent the loss of jobs and the loss of the value of assets, which could be undergone in an insolvency procedure.
With the support of the current project, we aim to draft a simple and clear law, taking advantage of the fact that the Restructuring Directive is flexible and that it allows Member States an appreciable margin in designing their law for insolvency prevention, business protection, and restructuring.
I advocate for simple procedures, easy to apply, without high costs of legal services. Now, let's see what the specialists involved in the project will deliver to us. They are practitioners and theoreticiens with a lot of aurae and professional reputation. Let's see them at work. The Ministry of Justice will be very demanding on the quality of the result and the compliance with the project deadlines. I wish them success!”, said the Minister of Justice, Cătălin Predoiu.
The meeting was attended by representatives of the Ministry of Justice (Law Drafting Department and the European Programs Department), the European Commission (General Directorate for Support for Structural Reforms), as well as by the experts of the Consultant, contracted by the European Commission, respectively the consortium formed by AARC, Transilvania SPRL Insolvency House and Business Hub Central Denmark.