The Italian Government approved the Legislative Decree for the reform of the Bankruptcy Law
- January 11, 19
After 77 years, Italian Bankruptcy Law will soon retire. Yesterday, the Italian Government approved the new Code of Business Crisis and Insolvency.
The law is now waiting to be formally enacted by the President of the Republic and published on the Official Journal (Gazzetta Ufficiale). It will enter into force after 18 months from the publication, except for some limited provisions (mandatory requirement of statutory auditors above certain thresholds of revenues and number of employees) that will become effective after 30 days from the publication.
The new Code will deeply impact the way business crisis and insolvency have been addressed so far as it is designed to favor business restructuring over liquidation.
Among the most innovative provisions is a system of preventive alert procedure the purpose of which is to push companies to acknowledge a state of crisis in its early phase so as to increase chances of recovery.
The press release of the Government is available here: https://bit.ly/2TEb468