CITR: About 6,650 insolvent companies in 2023, as in 2022

The number of companies using insolvency procedures in 2023 remained the same as in 2022, that is 6,650, said CITR, the leader of the insolvency and restructuring market in Romania announced on Thursday in a press release. Of them, 89 are impact companies, with active stock of 1 million euros, cmpared to 67 the previous year.   As for the number of restructuring actions through preventive arrangement with creditors procedure, there were 90 applications in 2023, 60 of which are valid today. At the same time, 14 applications were made by impact companies.   According to the source mentioned, the most affected sectors in 2023 were wholesale and retail trade, next to car and motorcycle repairs with 1,630 cases and a slight drop of 1.14% against the previous year. Then there is the building sector, which recorded an increase of 3.60% in 2023, with a total of 1,208 cases, and transports and storing, an increase of 18% and a total of 636 cases.   “Bucharest continues to register the highest number of insolvent companies, with an increase from 1,153 in 2022 to 1,289 in 2023. At the same time, we remark an increase of the number of insolvent companies in counties like Bihor, where the number grew from 545 in 2022 to 599 in 2023. We notice a drop in counties such as Arges, from 178 in 2022 to 120 in 2023, pointing out improvements in economic conditions or the efficiency of prevention and restructuring measures implemented,” the press release shows.   In 2023 there were 90 applications for opening preventive procedures, 60 of which are being carried out now. They all make a business figure of 250 million euros and immobilized active stock of over 100 million euros. Companies are mostly from trade, constructions and manufacture in counties like Dolj, Bucharest, Cluj and Mures. Of them 14 are impact companies with immobilized active stock of over 1 million euros. They have a cumulated business figure of 120 million euros and together they have immobilized stock of 78 million euros.   According to the source, a new concept integrated in Romania regards restructuring and is based on the European Directive which will offer prospects for recovering companies in difficulty.   At the same time, a product reinvented by the new restructuring provisions – arrengement with creditors, offers temporary suspension possibilities of any enforcement of which the entrepreneur can benefit to renegociate with parners, allowing to restructure the business and debts and restoring balance and prospects in business. In some cases, companies can also use extra-judicial restructuring in a consensual manner with their partners.   Financial restructuring and/or operational measures can be agreed by the main adminstrators, associates and creditors of the company. CITR has been the leader of the insolvency and restructuring market in Romania since 2008. With an experience of over 22 years in the insolvency market and over 1,100 projects CITR distributes over 100 million euros per year to creditors, in its mission to salve the value of Romanian impact companies. CITR is an Impetum Group company, the first Romanian group devoted to increase business value in any stage in the life of companies, with a view to creating positive impact in economy.