Italy's New Debt Restructuring Rules

June 15, 2012

The Italian Cabinet adopted today a Law Decree introducing important measures aimed at stimulating the Italian economy, including significant amendments to the Italian Bankruptcy Act. These amendments are intended to facilitate the restructuring of distressed companies, mainly through quicker access to judicial composition with creditors (“concordato preventivo”), interim financing and a new special form of concordato aimed at ensuring the continuity of the debtor’s business (“concordato con continuità aziendale”).

The new rules will allow quicker management of a debtor’s distress, under more transparent and protective conditions for all parties involved.

The attached memorandum provides an overview of the new rules.