Bucharest court blocks Bulgarian arbitration ruling in Euroins Romania case

A Bucharest court has blocked a Bulgarian group's attempt to enforce a Sofia arbitration ruling in Romania, related to a reinsurance contract for the now-defunct Euroins Romania.

The court's decision means the legal battle in Bucharest can proceed. Here, CITR, the judicial liquidator for Euroins Romania, is trying to nullify the reinsurance contract, which it alleges is fraudulent.

The Bulgarian group, formerly EIG Re and now Phoenix Re, had initiated arbitration in Sofia. The arbitration concluded the contract met formal requirements, but Bulgarian courts could not confirm its compliance with reinsurance practices. CITR challenged the ruling's validity in Romania.

Alina Popa, Head of Legal at CITR, stated the court's decisions have concrete effects. "Reducing a potential obligation from 12.7 million euros to approximately 1,500 euros directly protects the available assets for creditors," she explained. "At the same time, rejecting the recognition of the Sofia arbitration's effects in Romania allows the Romanian courts to continue their substantive review of the reinsurance contract." Popa added that CITR would use all available legal tools to preserve value and defend creditors' interests.

The next step involves the Bucharest court's ongoing process to examine the request for the reinsurance contract's annulment.

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The two solutions are important primarily through their concrete effects on the Euroins Romania procedure. Reducing a potential obligation from 12.7 million euros to approximately 1,500 euros means direct protection of the available assets for creditors. At the same time, rejecting the recognition in Romania of the effects of the Sofia arbitration allows the continuation of the analysis on the merits of the reinsurance contract by the Romanian courts. Our role is to use all available legal tools to preserve the value and defend the interests of Euroins Romania creditors.