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Insolvency Bulletin Report illustrate whether an insolvency procedure has been opened for any company in Romania.
Whether there are no records in the Insolvency Bulletin about the company, that means that no insolvency procedure has been started against the company, or that the company is not in insolvency status.
Whether there are records in the Insolvency Bulletin about the company, than for the respective company the insolvency procedure has started, and the Report presents the steps covered so far, and details related with those steps.
Insolvency is defined under Law 85/ 2006 as that status of a company's assets, characterized by insufficient cash and banking amounts so as to cover current (certain, liquid and due) liabilities:
a) Insolvency is presumed to be obvious when the debtor, within 90 days from due date, did not pay its liabilities to the creditor,
b) Insolvency is deemed as imminent, when it is proven that the debtor will be unable to pay in time its liabilities due, using the cash at its disposal at maturity date."
This report comprises a single section: The list of insolvency procedure stages comprising details about the name, date, court, number and date of court decision bulletin.
The results of the insolvency report can be:
A company which is in insolvency status, is not capable to pay its current financial obligations. As such, from a risk perspective, no relationship should be opened by a counterparty, with an insolvent company.
Whether a company has exit the insolvency procedure and it can continue its activity on a normal basis, the last record in the report mentions as the heading of the legal act 'Sentence of procedure closing', and as the procedure type 'Closing of the insolvency procedure with restate in the previous legal situation' or 'Sentence of procedure closing and dismissal of the legal decision to open the procedure'(see the report below).
In this case, the report details the steps of the insolvency procedure that have been accomplished so far.
In this respect, we recommend a thorough analysis of this report, it may happen that the company to be out of insolvency status, although in the past it has been pursuing the insolvency procedure