Când zidul poate deveni nisip: garanțiile publice locale în furtuna insolvenței unităților administrativ-teritoriale
When the wall may turn to sand: local public guarantees in the storm of municipal insolvency

Summary/Abstract: This article analyses the legal regime of local public guarantees in the context of municipal insolvency, highlighting a set of structural vulnerabilities in the current regulatory framework. Thus, the limits of the own revenue fund of the municipality, the uncertain order of priority of the creditors, as well as the impact of the recovery plan on secured claims are analysed. In this setting, the authors propose a series of criteria for the qualification of the main receivables involved in the insolvency procedure as well as certain tests that may be applied by the bankruptcy judge to ensure a balance between the basic principles of municipal insolvency - the protection of creditors and the continuity of essential public services. Based on such criteria and tests, resulting from patching the lack of clear rules with widely accepted principles, the judge may rely on a rationale allowing her to address the vulnerabilities of local public guarantees in the insolvency proceedings of municipalities.

• Details
• Contents