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Prevention · Court protection

Preventive concordat

Legal protection before financial pressure becomes a crisis — the company keeps operating under the court’s umbrella.

The preventive concordat is a court-supervised insolvency-prevention procedure governed by Romanian Law 85/2014. It allows the debtor to continue its economic activity while negotiating and implementing a recovery plan approved by the syndic judge.

Once the procedure is opened, the debtor benefits from a period of protection against forced execution — creditors cannot start or continue enforcement during the concordat. The recovery plan must be voted by creditors holding at least 75% of the total unsecured claims.

The preventive concordat is ideal for companies with a viable business but a debt structure that is hard to manage in the short term — balance-sheet restructuring without losing managerial control.

Why this procedure
  • Forced executions suspended for the duration of the procedure
  • The debtor keeps control of the company
  • A court-approved recovery plan = legal guarantee
  • A real alternative to judicial reorganization
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Frequently asked questions
What is the preventive concordat?
The preventive concordat is an insolvency-prevention procedure governed by Romanian Law 85/2014 (as amended by Law 216/2022), through which a company in difficulty negotiates a restructuring plan with its creditors, under the guidance of a concordat administrator and the protection of the court.
What protection does the preventive concordat offer against creditors?
From the approval of the concordat, individual forced executions for the claims included in the plan are suspended. The court may also grant a provisional stay as early as the opening of the procedure, giving the company the breathing room it needs to implement the plan.
What is the difference between the preventive concordat and the restructuring agreement?
Both prevent insolvency. The restructuring agreement is more flexible and involves the court only at confirmation, while the preventive concordat is a more structured procedure, run by a concordat administrator under court supervision throughout. The choice depends on the degree of difficulty and the relationship with creditors.