Italy is already implementing the Directive (EU) 2019/1023 of the European Parliament and the Council of 20 June 2019 (the “Directive”), related to the preventive restructuring frameworks, discharge and measures aiming at increasing the effectiveness of restructuring, insolvency and discharge procedures, that Member States shall implement within 17 July 2021.
The recent amendment brought by the Code of corporate crisis to the insolvency law, which dates back to 1942 and has been from time to time modified by multiple unsystematic reforms, introduced in Italian legislation most of the provisions of the Directive.
Entrepreneurs, statutory auditors and certain “qualified” creditors such as the Tax agent are obliged to promptly detect the possible insolvency upon occurrence of certain indexes that impose the activation of the instruments of alert with consequent duty of reporting.
The debtor can make recourse to procedures for composition of crisis (even if in the Italian Code of corporate crisis such possibility almost turns into a duty) before specific bodies to be set up at every Chamber of Commerce.
Also the possibility to cram-down dissenting creditors will be increased for debtors, and the risks that deeds performed within restructuring procedures are clawed-back will be reduced, with the intended scope of promoting the recourse to restructuring procedures and avoiding as much as possible that the company is declared insolvent, in a scenario where insolvency is no longer seen as a punitive measure and the entrepreneur benefits of asier and automatic discharge.