TVs that enter insolvency and don’t have a reorganization plan confirmed by the syndic judge will have the licenses suspended for 5-6 months.
The mentioned period is the medium term from the start of the insolvency until the reorganization plan is approved, Arin Stanescu, founding member and President of Romania’s National Union of Insolvency Practicians, stated, for Paginademedia.ro.
Suspending the audiovisual license for TVs in insolvency is included in the new Insolvency Code, approved by Romanian Government on Wednesday, via an emergency ordinance, and published Friday in Romania’s Official Monitor.
The new Insolvency Code state that TVs in insolvency are having their audiovisual license suspended until their reorganization plan is confirmed.
The 5-6 months period during which insolvent TVs won’t be able to broadcast is a relative one, as, from the moment the insolvency procedure starts and until the reorganization plan is confirmed, there are more steps to go through, explained Stanescu.
The stages of the insolvency procedure:
• Insolvency procedure is opened.
• Judicial administrator notifies all insolvent company’s creditors. Creditors must demand to be mentioned on creditor’s mass.
• A preliminary creditors’ table is compiled
• Company’s actives are evaluated
• The final table of creancies is submitted
• The reorganization plan is compiled and than submitted to Creditors Assembly’s vote
• If the reorganization plan is voted by creditors, it reaches to the judge, that must confirm it
Arin Stanescu mentioned that the new Insolvency Code doesn’t only affect the media companies functioning on licenses, but also the rest of the companies that confront with financial difficulties.
“Diminishing the term to make a reorganization from 3 years – that was already a short term – to a year makes almost impossible a reorganization plan, and this leads to faliment for companies that confront with financial problems. Practically, we won’t have reorganizations anymore and nobody will win anything from this. In France, the term is of 10 years and there’s no limit in US”, Stanescu said, for Paginademedia.ro.
Translation provided by AdHuggerCarmen Maria Andronache carmenpaginademedia.ro