Law 381/2009 regarding the preventive concordat and mandate the ad-hoc mandate

Given the current context of the economic crisis, more and more companies are in financial distress, the initiator of Law 381/2009 Mr. Mircea Grosaru, being aware of this, succoured these companies by proposing a bill that was approved and came into force at the beginning of 2010.

As a result, law no. 381/2009 regarding the introduction of the preventive concordat and the ad-hoc mandate is in incipient stage but could have an extraordinarily beneficial impact for the Romanian business environment by generating professionalism having at its base prevention and prudence. Risk-taking in business shall not transform itself into a loss, but when it is near imminence, those affected should be able to seek redressing and must be given the opportunity, but also a suitable mechanism to have a chance to succeed. The preventive concordat and the ad-hoc mandate , as pre-insolvency procedures are able to provide a mechanism for extrajudicial restructuring of the debtor's obligations and lead to a reduction in the pressure generated by decreasing dynamic of the enterprise.