Restructuring and Insolvency in Italy: Law and Practice
Riccardo Sgrò
ABSTRACT
This article provides a comprehensive overview of the Italian restructuring and insolvency framework under the Italian Insolvency and Crisis Code (Codice della Crisi d'Impresa e dell'Insolvenza – CCII), taking into account the most recent legislative reforms and the implementation of the EU Preventive Restructuring Directive. It examines the full spectrum of available restructuring and insolvency tools, ranging from purely consensual out-of-court solutions to court-supervised restructuring proceedings and formal liquidation processes.
The article analyses the legal requirements, procedural steps and practical features of each restructuring instrument, including negotiated crisis composition, certified recovery plans, debt restructuring agreements, restructuring plans subject to court approval, compositions with creditors, judicial liquidation and extraordinary administration. Particular attention is devoted to the rights and priorities of secured and unsecured creditors, the role and powers of courtappointed officers and independent experts, the position of shareholders and directors, and the increasing emphasis on business continuity as a primary restructuring objective.
The article also examines directors' duties in situations of financial distress, creditor protection mechanisms, cross-class cram-down rules, new financing, avoidance actions, cross-border insolvency issues and the interaction between corporate governance and restructuring proceedings. Throughout, it highlights the practical implications of the CCII reforms and the growing alignment of Italian insolvency law with European restructuring standards.
Designed as a practical guide for international investors, lenders, distressed debt funds, financial institutions and legal practitioners, the article offers an accessible yet detailed analysis of the Italian restructuring landscape and the key legal considerations affecting distressed businesses and their stakeholders.
