The Government Ordinance no. 10/2004 on the bankruptcy of credit institutions has been recently amended by the Government Emergency Ordinance no. 12/2012, published in the Official Journal no. 593 dated 20 August 2012.

The amendment refers to the order of distribution of the bankruptcy proceeds and repeals the former article regarding subordinated claims, insofar as such claims referred to loans made by shareholders holding more than 10% of the share capital of the bankrupt credit institution.  

Instead, a new category of claims is introduced in the distribution order, namely claims arising from debt instruments and loans, based on contractual arrangements which include a subordination clause. Payment in respect of such claims would be made with the observance of the order of preference established by the respective subordination clause.