The Law no. 273/2006 concerning local public finances regulates in the articles 74 and 75 the financial crisis and the insolvency procedure of the administrative-territorial units. This legal institution is thus regulated for the first time by the Romanian legislation. In addition, the problem of the insolvency procedure concerning a legal person of public law is raised for the first time.

The study achieves the analysis of the concept of “financial crisis”, its characters, its causes and the possibilities of recovery of an administrative-territorial unit – legal person of public law which faces the financial crisis.

The study analyses the actors of the insolvency procedure, the possibility to propose a financial reorganization plan, the conditions required for opening the procedure, the role of the syndic judge, the powers of the judicial administrator and the consequences of the opening of the procedure. The study also examines the connections with the legal provisions contained in the Law no. 85/2006 on the insolvency procedure and the perspectives of an unique and coherent regulation, applicable in the same time to insolvency procedures concerning legal persons of private law, as well as legal persons of public law.