Romania prepares new rules on insolvency

The Government is developing new rules on insolvency, upon the demand of the Tax Authority ANAF. It will remove the current legal norms that prevent the prosecuting authorities from blocking the insolvency account or the assets of a company suspected of producing damages after entering insolvency, reports local Profit.ro. If an insolvent company does not pay its current liabilities, it will go bankrupt, according to the new rules. Also, a company that enters insolvency will not be able to nominate its judicial administrator anymore. A company that is very close to insolvency will not be allowed to merge with another company to be removed from the Trade Register. The insolvency procedure needs to undergo changes, as the current one still proves a useful instrument in defrauding creditors, according to the ministry document drafted at the proposal of ANAF. editor@romania-insider.com