On 24 October 2018, a Court of Appeal ruling in an insolvency proceeding decided to clearly distinguish between what is known in legal theory as a contingent claim, on the one hand, and on the other hand, a conditional one. This is paramount especially for players’ rights during insolvency proceedings which, more often than not, have a tendency to over-protect the debtor club, thus discriminating creditors.
[1] Timisoara Court of Appeal, 24 October 2018, decision no. 676 in case file 4243/30/2017.
Romanian Insolvency Law provides a special procedural framework, in which the debtor is protected, once in insolvency or administration, from any act of enforceability. Namely, as of the date of opening insolvency proceedings, any judicial or extrajudicial action, forced execution or such is suspended ipso jure until the closing of the proceedings.[1] Nevertheless, the insolvency judge is authorized to approve the payment of any debt, if such a request is filed and if it can be proven that such a measure would lead to a “protection” of the assets of the club.
After the opening of the insolvency...
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