28 June 2024
The Italian government approved a draft legislative decree containing amendments to the Italian Business Crisis and Insolvency Code.[1]
The amendments clarify critical issues on interpretation and application that have surfaced since the code came into force almost two years ago.
There are two major changes:
- Negotiated settlement (“composizione negoziata della crisi”) can be used to settle tax claims. Previously, tax claims could only be settled via Composition with Creditors (“concordato preventivo”) or a debt restructuring agreement (“accordo di ristrutturazione dei debiti”).
- The decree establishes a deadline for statutory auditors to report any sign of crisis to the board of directors in order to avoid liability. The term is now set at 60 days from the moment the supervisory body becomes aware of the existence of a crisis.
[1] In a press release dated June 10, 2024.
