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A First on the Romanian Insolvency Market
01/25/2010 I Source NNDKP
Nestor Nestor Diculescu Kingston Petersen lays the foundation for a permanent collaboration with Casa de Insolventa Transilvania
Bucharest, January 25th, 2010 - Nestor Nestor Diculescu Kingston Petersen (NNDKP) and Casa de Insolventa Transilvania (CITR) initiated a collaboration intended to consolidate CITR’s position on the insolvency market, as well as to further develop its ability to manage insolvency projects at a national level. At the same time, NNDKP intends to increase its volume of legal advice services in insolvency cases by 15%, particularly in the field of judicial reorganizations and restructuring.
The collaboration is based on the remarkable experience of the insolvency practitioners within CITR, providing clients with services such as the initiation of insolvency proceedings, management of insolvency cases in the capacity of receiver or liquidator, consultancy in the stages preliminary to the insolvency proceedings and on the extensive expertise of NNDKP in areas of company restructuring and contracts, as well as in insolvency cases, litigations and amicable dispute resolution.
In an economy severely affected by the recession, the collaboration is intended to consolidate the services provided by NNDKP and CITR in the field of restructuring and insolvency, by creating a high standard of performance, establishing specific approaches and implementing certain solutions to serve as reference tools for as high a number of clients as possible.
“The stabilization of the activities conducted by the companies that experienced significant losses in the past two years, particularly due to the economic crisis; the negotiation of specific agreements acceptable for the creditors and the fast recapitalization of the companies through mergers or increases of capital, are among the most efficient solutions in insolvency projects, acquiring complex facets as the fields become further diversified. Therefore, the complexity of current insolvency proceedings contributed to the need for creating this collaboration”, Andrei Cionca, Managing Associate of CITR, explains.
“The collaboration with CITR takes place at a point when the number of Romanian companies that are in financial difficulty is growing. Thus, it was time for a change with respect to approaching such situations, both from the position of the debtors and from that of the creditors, in order to find, when economically feasible, solutions for continuing the activity of the companies and for the creditors to recover as much as possible of the debt claims”, states Ion Nestor, one of NNDKP’s Managing Partners.
Specialists estimate that, in 2009, the number of insolvency cases exceeded 20,000, an increase of 42% compared to 2008; and that the most affected sectors were commerce, constructions and real estate. While the period between 2002—2007 was marked by some significant bankruptcies (such as Tractorul Brașov, Rulmentul Brașov, CUG Cluj or UTEPS Alba), starting with 2009, specialists forecasted a transition from such proceedings to the judicial reorganization proceedings, offering the companies the opportunity to surpass the difficult periods from a financial perspective and pay off a part of their debts.
Since its establishment and up to present, Casa de Insolventa Transilvania handled over 450 cases, a significant part of which consisted of complex projects that required extensive expertise and an emphasis on judicial reorganization. In 2009, CITR handled over 150 cases and managed a patrimony that increased by 300% compared to the previous year, the amount thereof reaching EUR 200 million.
The collaboration will also be reflected in CITR’s promotional materials, which will thus benefit from the association with NNDKP’s visual identity elements. Furthermore, NNDKP will support the development of CITR at national level, the first step in this respect being to move CITR’s center of activity to the new office opened in Bucharest, further to an initial investment of around EUR 100,000.
Casa de Insolventa Transilvania is one of the major players on the insolvency market, providing specialized services in the field, ranging from the initial audit, crisis management and pre-insolvency consultancy to the management of reorganization, judicial liquidation and voluntary liquidation. With over 60 experts, of which 15 insolvency practitioners, CITR currently manages over 150 medium and large-sized projects, according to the volume of assets, through its subsidiaries in Bucharest, Cluj, Bihor, Brașov, Satu Mare, Sibiu, Timiș.
CITR is ISO 9001:2000 certified for quality management in insolvency and bankruptcy proceedings.
Nestor Nestor Diculescu Kingston Petersen is a promoter of business legal practice in Romania and currently holds a team of 115 lawyers, a staff of 75 employees, offices located in Bucharest, Timișoara and Brașov and provides complete legal services to companies conducting their activity in Romania. On the insolvency market, NNDKP provides legal and tax integrated services (through the entity NNDKP Tax Advisory Services) in the restructuring field, covering both conventional restructuring processes and reorganization and liquidation proceedings pursuant to the insolvency legislation.
In 2009, NNKDP was declared “Company of the Year 2009” in Romania, by the prestigious international publication Chambers Europe and was ranked first in all practice areas analyzed in Romania by the most reputed international legal guides, Chambers & Partners, The European Legal 500 and IFLR 1000.
