Composition with creditors in Italy.

The Italian procedure called "Concordato preventivo".

In Italy the composition or arrangement with creditors is ruled by the Bankruptcy Law.

The company which is in state of crisis, may propose an arrangement to the creditors on the basis of a plan that may include:
- the restructuring of debts and satisfaction of claims through any form, including the sale of assets, assumption, or other extraordinary transactions, assignment to creditors of shares, bonds or other financial instruments and debt securities;
- the classification of creditors into classes according to the legal status and homogeneous interests;
- differentiated treatment among creditors belonging to different classes.

According to Italian law, state of crisis also means the state of insolvency.

The application for admission to the composition procedure must be submitted to the court of the place where the company has its legal address.

The debtor must submit with the application:
a) an updated report on the financial and economic position;
b) an analysis and estimate of the assets and a list of names of the creditors, indicating their respective claims and causes of pre-emption;
c) the list of holders of rights on real or personal property owned or held by the debtor;
d) the value of assets and creditors of any particular member of the company with unlimited liability;
e) a plan containing the description of the analytical methods and times of execution of the proposal of composition.

The proposal of composition must be accepted by the creditors.

If you need more information about the arrangement with creditors and backruptcy law in Italy, please contact us (click here: Lawyers in Italy).

Please, see also:

Bankruptcy in Italy

Distribution contract in Italy

Contract Law in Italy

Law of contract in Italy: the written form

Termination clause and essential term in Italy

Termination of the contract for non-performance and the notice to comply

Non-compete clause in the distribution contract in Italy

Special court for foreign companies in Italy

Sponsorship contract in Italy