Government Emergency Ordinance GEO 8/2018 introduced significant amendments to Romania’s insolvency framework. The ordinance modified multiple legislative instruments, including the primary insolvency law, judicial application procedures, fiscal budgetary provisions, and regulations governing insolvency practitioners.

The ordinance aimed to strengthen mechanisms for recovering state receivables from struggling companies and prevent debtors from exploiting insolvency processes to evade state obligations.

Key Changes

Minimum Debt Threshold

Companies must owe at least RON 40,000 (approximately EUR 8,500) to initiate insolvency proceedings, with state debt comprising less than 50% of total outstanding obligations.

State Claims Registry

State budgetary claims receive creditor table registration regardless of acknowledged tax decisions issued after insolvency initiation, provided taxes stem from pre-insolvency activities.

Administrator Restrictions

Individuals or entities serving as creditors cannot be appointed as special administrators.

Judicial Receiver Duties

Receivers must submit monthly compliance reports covering tax obligations, permits, public authority decisions, and fees. They cannot engage third-party specialists connected to company directors, liquidators, or creditors.

Receivable Processing Timeline

A ten-day review period applies to payment requests; creditors may initiate bankruptcy proceedings if unresolved within sixty days.

Reorganization Options

State receivables may convert to equity with prior state consent, allowing creditor approval for unsecured receivable reductions supporting efficient recovery.

Liability Investigations

Receivers or liquidators must pursue patrimonial liability claims against responsible parties within three years of insolvency initiation.