Insolvency proceedings initiated under Law No 85/2006. The distribution of the amount obtained from the sale of an asset representing the collateral of a secured creditor. Creation of provisions. Validity and cosnequences

DREPTUL AFACERILOR/ASPECTE DE DREPT PROCESUAL

Abstract

The provisions of Article 127(4) of Law No 85/2006, concerning the possibility of making provisions for future expenses in the proceedings, apply equally to distributions made from the recovery of the debtor's unsecured assets and from the amounts realised as a result of the recovery of secured assets.

This is because the provisions made from the sums obtained from the sale of the secured asset are intended to support the costs of the proceedings and therefore justify their reimbursement, in priority, to the person who incurred them.

Therefore, the secured creditor will not lose its priority in the distribution of the amounts on which provisions for future expenses have been made, since these amounts will be distributed to it in the future in the category of expenses necessary for the preservation and management of the debtor's assets – according to the order of distribution established by Article 123(1) of Law no. 85/2006.