Clifford Chance

Safeguarding secured creditors' rights in insolvency: a landmark victory by Clifford Chance Badea

13 May 2025

Under the Insolvency Law no. 85/2014 ("the Insolvency Law"), secured creditors enjoy a privileged position when it comes to recovering their receivables, compared to non-secured creditors. As a rule, the proceeds from the sale of secured assets are distributed to the secured creditors after settling certain procedural costs, such as judicial receiver’s fees, valuation fees, and utility costs.

According to the Insolvency Law, secured creditors should only bear procedural costs accrued up until the distribution of the sales proceeds. However, in practice, judicial receivers often set aside a portion of the sales proceeds (by retaining a provision amount – in Romanian, "provizion") to cover procedural costs expected to accrue after the sale of the secured assets.

This briefing draws special attention to the legal and case- law context, highlighting a favorable precedent secured by our team in Romania and outlining the next steps.

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