Insolvency reorganization plan prohibition on installment payment of current and budgetary claims

The Supreme Court of Romania (High Court of Cassation and Justice), acting through its Panel for the Resolution of Legal Questions, issued a mandatory binding interpretation ruling, admitting the referral by the Appeal Court and establishing that, under Article 133(4)(e) of Law No. 85/2014 on insolvency, a debtor's reorganization plan cannot provide for the installments or deferral of payment for current claims, including budgetary claims. The case involved a civil insolvency procedure where the lower court sought a pre-trial ruling on the admissibility of such installments in a reorganization plan. The decisive legal basis is the specific prohibition found in Article 133(4)(e) of Law No. 85/2014, which restricts the modification of payment terms for current liabilities during reorganization, thereby mandating that current claims must be paid in full or according to their original terms without the benefit of installment plans.