Organizing auctions with the aim of selling at the highest price possible has remained a common practice since the beginning of time. While the methods of organizing auctions have changed according to the customs of the time and place, the practice is still very common in most parts of the world. An interesting fact is that people tend to have a sort of fascination with auctions and often give them symbolic meaning, writes Patricia Poulussen-Radulescu, Project Manage at CITR Romania.

That is reflected in the ways the auction is organized: from announcing the starting price, to declaring the winner. When it comes to insolvency, public tenders align perfectly within its principles and scope: maximizing asset recovery, ensuring transparency in proceedings, giving a fair treatment to creditors, selling the assets in a timely and efficient manner. In Romania, creditors can choose between methods of asset sale, from negotiation procedures to public tenders, as long as transparency over the entire process is guaranteed. But we notice that still the most common method proposed by insolvency practitioners and approved by creditors is the public tender. 

Read the full story here

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• A legal entity established with the participation of the debtor; 
• A legal entity that currently controls or has controlled the debtor within the last three years; 
• A legal or natural person that is or was controlled by the debtor within the last three years; 
• A legal entity that, together with the debtor, is or was under the control of a third party within the last three years; 
• The owners (shareholders, participants) of the debtor; 
• The CEO, management board members, chief accountant, and other executives of the debtor, including those who left their positions within three years prior to the initiation of bankruptcy proceedings; 
• Persons with whom or for whose benefit the debtor has concluded transactions for the alienation of assets that do not meet the criteria of reasonableness (economic feasibility, business purpose) and good faith; 
• A party to a fraudulent transaction made by the debtor or a transaction declared invalid under Article 42 of this Code; 
• Family members of the above-mentioned persons, including spouses, children, parents, siblings, grandchildren, and other individuals who can be reasonably considered related parties. 

• State Enterprise "Eastern Mining and Processing Plant" until January 1, 2026; 
• State-owned coal mining enterprises. 

In the Winter edition of Eurofenix Patrizia Riva (Associate Professor at Università del Piemonte Orientale, CPA, Auditor, IP) and Simone Accettura (Research fellow at Università del Piemonte Orientale, CPA, Auditor, IP assistant) discuss the integration of ESG (Environmental, Social, and Governance) non-financial information into corporate reporting and its role in early warning systems for business crises, specifically within the Italian context. 

Impact of CSRD: The Corporate Sustainability Reporting Directive (CSRD) mandates companies to provide comprehensive ESG information, emphasizing a "double materiality" perspective. This requires firms to disclose how their activities impact society and the environment, as well as how sustainability factors affect their performance. While unlisted SMEs are not directly required to report, they may still be influenced by larger firms' demands for sustainability data.

Non-Financial Information in Crisis Prevention: The Italian Insolvency and Crisis Code aligns with EU directives to promote preventive measures before a crisis occurs. It suggests combining financial indicators with ESG indicators to create a more holistic view of a company’s health. Companies must have robust organizational, administrative, and accounting structures to effectively monitor and respond to potential crises.

ESG Indicators for Crisis Forecasting: Identifying suitable ESG indicators is crucial for predicting business outlooks. The Italian Business Reporting Organisation (OIBR) has developed a framework for selecting non-financial ESG indicators to assess corporate structures and forecast crises. These indicators should consider various risks, including environmental, reputational, strategic, organizational, and market risks. The article concludes that integrating ESG factors into management and reporting is essential for effective crisis management.

You can read the full article titled 'The role of non-financial information in early warning and preventive restructuring' in the latest edition here.​

If you would like to contribute to a future edition, please follow the guidelines on our website and contact Paul Newson with your proposal and a short synopsis.

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On 3 March 2025, TRY O LLC, the management company of Gulliver, one of the largest business centres in Kyiv, initiated the first preventive restructuring procedure in Ukraine.
Law of Ukraine No. 3985-IX, implementing EU Directive 2019/1023 and introducing the preventive restructuring procedure, came into force on 23 January 2025.

The preventive restructuring procedure was initiated by a resolution of the company’s Annual General Meeting.

The crucial application is currently pending before the Commercial Court of Kyiv City (case No. 910/2221/25). This marks an important precedent for Ukrainian businesses, opening up new opportunities for restoring companies’ financial stability.

The court applied the following safeguard measures to TRY O LLC:

• Bankruptcy proceedings cannot be initiated against the debtor.
• The accrual of fines and other financial penalties under the debtor's obligations to the involved creditors is suspended.
• Any alienation or disposal of the debtor's property (except for transactions made in the ordinary course of business) shall be carried out only in accordance with the procedure provided for in the preventive restructuring plan.
• Any increase or decrease in the debtor's authorised capital, as well as the withdrawal of a member from the limited liability or superadded liability company-debtor, may be carried out only in accordance with the procedure provided for in the preventive restructuring plan.

The company must file a preventive restructuring plan with the court by 3 May 2025.

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Pravo-Justice and INSOL Europe joined forces for a webinar on 24 January 2025 further to the implementation of the Directive (EU) 2019/1023 on Restructuring and Insolvency in Ukraine. Indeed, on 22 October 2024, the President of Ukraine signed the law No. 3985-IX adopted by the Parliament of Ukraine on 19 September 2024 amending the Bankruptcy Code and introducing a preventive restructuring framework aligned with the EU acquis. 

The webinar – reaching 154 registrations - focused on the lessons learned from the implementation of the Directive on Restructuring and Insolvency in France, Greece, Italy, the Netherlands and Romania to prepare the entry into force of the Ukrainian preventive restructuring framework.

Iryna Zharonkina (EU Project Pravo-Justice Enforcement and Protection of Property Rights Component Lead) welcomed the attendees and introduced our president Alice van der Schee, (Van Benthem & Keulen, The Netherlands) who presented our organisation as well as an update on the national implementations of the Directive on Restructuring and Insolvency and their assessment by the European Commission.

During three hours, Judge Luciano Panzani (Judicial Wing member, Italy), Stathis Potamitis & Vassilis Stergiou, (POTAMITISVEKRIS, Greece), Christophe Thevenot (Council member, Thevenot Partners, France), Paul-Dieter Cirlanaru, (Council member, CITR, Romania) and Judge Elsbeth de Vos (Judicial Wing member, High Court of Amsterdam, The Netherlands) shared insights from their practical experience within their respective jurisdictions in accessing preventive restructuring procedures, facilitating negotiations on preventive restructuring plans and getting restructuring plans designed and approved.

The discussions were brilliantly moderated by Oleh Vaskovskyi (Supreme Court Justice, Secretary of the Judicial Chamber for Bankruptcy Cases of the Commercial Cassation Court within the Supreme Court), Vladyslav Filatov (Director of Bankruptcy Department, Ministry of Justice of Ukraine) and Oleksandr Bondarchuk, (Head of National Association of Insolvency Trustees, Absolute Law Firm).

The Directive on Restructuring and Insolvency has been a milestone for the EU towards targeted harmonisation of Member States’ national insolvency laws in the area of preventive restructuring frameworks. Our joint event was the opportunity to evaluate the practical impact of the implementation of the provisions of the Directive on Restructuring and Insolvency in five Member States, exchange good practices and highlight issues, amongst EU and Ukrainian professionals that will guide the future of harmonisation of restructuring in Europe.

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