The new bankruptcy code that the government is preparing will provide for the settlement of debts to the state in up to 240 monthly tranches, up from 120 today, as part of the extrajudicial debt arrangement framework for enterprises. The code will also include stricter rules for streamlining enterprises in the context of the pre-bankruptcy procedure.
The revised bankruptcy legislation will offer protocols for all procedures currently applying to bankruptcy on the basis of the adjustment of the country’s legislation to the new European Commission Directive on insolvency. It will also codify all pre-bankruptcy processes aimed at saving an enterprise and preventing its bankruptcy in a single text.
The new bill will specifically regulate the out-of-court settlement of debts through the online platform operating at the Special Secretariat for Private Debt, the old Articles 99-106 concerning the process to prevent bankruptcy and streamline problematic companies, and the special administration known as the Dendias law.
The bankruptcy code has been the subject of exhaustive talks with the creditors and the banks to get it up and running in 2021.