“In 2012 there will still be talk if insolvency, but there will be more reorganization and less bankruptcy. We are high above the European average when it comes to insolvencies, and we have a very low number of successful reorganizations,” Vizental said.
He added that, on many occasions, Romanian companies call for insolvency too late, which makes reorganization difficult. In addition, court-appointed administrators lack the necessary experience and, at times, there are also conflicts of interests, when the administrator is also the liquidator.
A total 13,984 firms went insolvent in Romania within the first nine months of the year, 10% less than in the same interval of the previous year, according to data from the national trade registry ONRC.
In the same timeframe, a total 16,474 companies suspended activity, 72.25% less than in the same interval of 2010.