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Insolvency in Romania – Solution for Avoiding Company Bankruptcy in the Context of Economic Crisis

The lack of a propitious economic environment made the number of companies in Romania that became insolvent to progressively grow from one year to another, even though average sales registered in the year of starting the procedure were larger than the ones in previous years.
The performed study presents on one side the evolution of companies in insolvency in Romania in the crisis period and on another side determining factors of their activity’s continuity. The companies surviving the crisis are the ones that managed to reinvent themselves and identify new sales niches for their products and services, but one of the greatest disadvantages of these companies in insolvency remains the negative image outlined around them.
The insolvency procedure represents only one confirming instrument of a factual situation, respectively the one of Romanian companies’ powerlessness in paying their increasingly higher debts. The year of 2008 had a prominent evolution in the number of bankruptcies in Romania, especially after the instauration of the economic crisis, many creditors abusively using this insolvency procedure that in the current economic conditions is opened too easily, affecting the economic performance, even the companies’ survival.
In conclusion, the recovery must be thought as a process that begins before the respective company reaches insolvency, exactly to avoid this, and the choice of solutions must take into consideration the multitude of factors influencing the respective company.

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Posted in Economics, Information Technology, Knowledge Management, Volume V, Issue no. 6