European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
Bankruptcy law, articles 1, 160-186 bis; Legislative Decree no. 5/2006, articles 141-146; Decree Law no. 83/2015, articles 1-4, 8; Law 19/10/2017 n. 155. article 13, Law no. 83 of 17 June 2022
In September 2017, a new law covering bankruptcy and insolvency procedures was approved and put into force by Legislative decree 12 January 2019, n. 14.
The new law lists three indicators which should alert the company about an upcoming insolvency risk and prompt it to take action:
These alerts should prompt the company to take action and undergo negotiations with its creditors to enable the company to go back to normal. Only if these negotiations fail or if there is a clear evidence that the company is not willing to negotiate, the matter can be taken to court after 60 days. In this case the statutory auditors need to inform OCRI (Observatory for companies rescue).
A second system of alerts is external:
The entrepreneur needs to present a plan containing:
An auditor can be called upon to certify that company's financial information is correct and that the plan is feasible from an economic and legal point of view.
An agreement must be reached with creditors representing at least 60% of the credits being renegotiated.
There is a possibility to agree with creditors which represent only 30% of the credits but the plan must not envisage:
Changes to a plan can be made, but agreement from creditors must be reached.
Both the amended plan and the attestation must be published in the business register (article 58) and the debtor is charged by giving notice to creditors who, in turn, can lodge an opposition within the term of 30 days.
This set of operations is excluded from penal law consequences (except in cases where there is malevolent intent) and tends to favour solutions which can ensure business continuity as well as debts repayment.
The law no.75 of March 3, 2022, from the Ministry of Justice, established an electronic register for entities responsible for managing business crisis and insolvency procedures. The register, accessible online, is divided into ordinary and OCRI sections. Registrants must meet specific professionalism and integrity requirements. The registration application must be submitted to the Department for Judicial Affairs of the Ministry.
The Law no. 83 of 17 June 2022 integrated EU Directive 2019/1023 into Italian law, focusing on preventive restructuring, disqualification, and insolvency procedures as part of the National Recovery and Resilience Plan. This law amended existing decrees to enhance the framework for managing business crises and insolvencies. It introduced mandates for entrepreneurs to establish structures for early crisis detection and emphasized improved consultation processes with unions. Significant changes included a shift towards negotiated compositions for business crises, streamlined access to crisis and insolvency management tools, and enhanced creditor involvement in judicial liquidation processes. The law also prioritized business continuity over liquidation in corporate group insolvencies and aligned the roles of commissioner liquidators with curators. The second part of the law revised and revoked certain provisions from previous legislative decrees, updating the Code. The law was started to take effect on July 15, 2022.
The law no.103 of August 10, 2023, converted the decree-law of June 13, 2023, no. 69, which contains urgent provisions related to European Union obligations. A key provision, Art. 1-bis, introduces transitional measures on business crisis in line with the directive (EU) 2019/1023, aiming to ensure adequate protection for creditors and to ensure consistency with the objectives of the National Recovery and Resilience Plan.
The law which entered into force in January 2019 eases the access to a pre-bankruptcy agreement, strengthens powers of the trustees, and promotes rescue proposals that address the crisis by ensuring business continuity.
With the enactment of the Law of 8 March 2019, n. 20, a new delegation has been assigned to the government for the promulgation of integrative and corrective dispositions of the reform of the discipline of the business crisis and insolvency. The reform contained in Legislative Decree of 12 January 2019, n. 14, could therefore undergo modifications or additions in the near future.
The Legislative Decree No. 83 of 2022, integrating the EU Directive 2019/1023, marked a pivotal change in Italy's approach to business crisis management. It merged past emergency measures, initiated a unified system for crisis handling, and highlighted the importance of business continuity. The decree also heralds a national digital platform for crisis management.
Eurofound (2016), Italy: Rescue procedures in insolvency, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/rescue-procedures-in-insolvency/italy
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