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Cross-border insolvency

Recognition of foreign proceedings

Under what circumstances will the courts in your jurisdiction recognise the validity of foreign insolvency proceedings?

EU Regulation 1346/2000 (and the new EU Regulation 2015/848) provides for EU-wide effects of main insolvency proceedings opened in any member states (where the debtor’s main interests are located), while secondary procedures can be opened in another member state (where the debtor has an establishment) according to domestic rules.

Non-EU insolvency proceedings can be recognised in Italy without any formality. A court order is required only in case:

  • an objection is raised that conditions required by Italian law for recognition are not met; or
  • an enforcement procedure (eg, the expropriation or seizure or apprehension of assets) is required, based on the foreign judgment or order.

Winding up foreign companies

What is the extent of the courts’ powers to order the winding up of foreign companies doing business in your jurisdiction?

The Italian courts can declare bankruptcy (or another insolvency procedure) of a foreign company (including EU companies) which has its main interests in Italy.

Centre of main interests

How is the centre of main interests determined in your jurisdiction?

The Supreme Court’s approach is in line with that introduced by the European Court of Justice in Interedil – in particular, the presumption that the centre of main interest is located at the company’s registered office can be rebutted when it is apparent to third parties that decisions regarding the administration and control of the company are being made in another member state.

Cross-border cooperation

What is the general approach of the courts in your jurisdiction to cooperating with foreign courts in managing cross-border insolvencies?

Italian courts are considered quite cooperative.

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