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ENTREPRENEURS: Insolvency puts in difficulty the businesses of the entire industry
English Section Publicat de Adrian Agachi 25 Iul 2013 10:10
As more construction contractors entered in the state of insolvency, a brief analysis of the cases pending in courts across the country shows that the difficult situations which have generated the cessation of payments, successive procedural delays, complaints and appeals processes, direct all the processes towards a single solution - namely bankruptcy. Unfortunately, due to the nature of this business, which involves cooperation with other companies that have a similar activity, namely with subcontractors, building material suppliers, lending institutions (banks or other etc.), the multitude of creditors and the substantial value of registered debts leads to the fact that, in compliance with the current form of Law. 85/2006 (consolidated in 2010), the providers of goods and services are not able to recover their claims. Insolvency experts, who have accumulated extensive experience in what concerns the judicial administration of companies starting with 2009, when the effects of the recession deepened, claim that 2013 is a turning point for many operators, which could enter into a state of inability to pay. From the analysis of specific cases results that, in fact, there is no general solution available that could rebalance, when applied, the businesses conducted by companies with problems. However, the delays (whether procedural or otherwise) reduce the chances of recovery, because they are related with the moment in which irregularities are identified and with the swiftness of remedial intervention. Thus, the progressive accumulation of paying debts and financial obligations to suppliers should be avoided, and communication represents a very important element right from the step when the first debts cannot be paid back. For example, the imbalance can be solved through negotiations and scheduling of payments, insolvency being, thus, avoided. If for some reason the procedure is triggered, recovery is still possible through the judicial reorganization of the entity concerned. If the intervention is delayed, the specter of bankruptcy becomes more visible, as it is shown by a number of experts from the field. For further information and a detailed analysis of the current Agenda Constructiilor issue click here!
 
 
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