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Number of insolvent companies down 6.2pct in H1 (analysis)
The number of companies going into insolvency fell 6.2% in the first half of the year, to 3,290, compared to 3,510 in the same period last year, according to a CITR analysis, a company active in the insolvency and restructuring market, told Agerpres.
At the same time, among impact companies, the number going into insolvency increases to 35, up from 32 in the same period in 2022.
According to the source , the business environment has shown increased interest in new restructuring products, with 30 preventive arrangement drafts, two of which are already approved by the court.
"In the last six months, we have felt pressure on companies that have to cope with a higher cost of financing or the inability to pay debts deferred for a very long time and have become accustomed to this paradigm. The increased interest of entrepreneurs in new restructuring mechanisms has become more and more visible. 30 arrangements with creditors may not seem like a large number, but for Romania's economy it is the beginning of a change of mindset. Given the confidential nature of restructuring procedures, we do not have visibility on all open projects, especially on restructuring agreements, so we can estimate that the number of companies resorting to restructuring solutions is higher," said CITR CEO Paul Dieter Cirlanaru.
In the first half of this year, 30 companies filed for restructuring measures through agreements with creditors, including eight impact companies with assets of more than 1 million euros, compared to 12 such filings in the whole of 2022.
Compared to the total number of insolvencies registered in January-June 2023, 3,290, impact companies with fixed assets of more than one million euro represent 1.06%.
The most affected sectors are construction (449 companies in insolvency), road freight transport (248 companies) and trade (177 companies). On the other hand, these sectors also register the most companies in the economy.
In Bucharest, 695 companies have resorted to insolvency proceedings, including 17 impact companies with assets of more than one million euros. At county level, the distribution of insolvencies in the first half of 2023 puts Bihor on first place, with 241 companies and 7.33% of all insolvencies registered. Cluj follows, with 174 companies and a share of 5.29% of the total, and Constanta, with 165 companies, which represents 5.02% of the number of insolvencies registered at national level.
CITR has more than 20 years of experience in the insolvency market and almost 1,000 projects managed over the years. CITR annually manages assets of one billion euros and distributes more than 100 million euros to creditors annually in its mission to save value in high impact Romanian companies.
