Lawmakers introduce further measures in order to stimulate new loans after the pre-filing for concordato preventivo or for a debt restructuring agreement, when it is urgent to prevent an unrecoverable prejudice to the business

The context

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With Law No. 132 of 6 August 2015 Italy’s parliament finally passed (with some amendments) Law Decree No. 83 of 27 June 2015 (as finally converted into law, the “Decree”), amending various provisions of Royal Decree No. 267 16 March 1942 (the “Bankruptcy Act”), the civil code and the code of civil procedure, and certain tax provisions. The amendments aim to facilitate debt restructurings, support distressed companies in their turnaround attempts, and foster quicker liquidations in bankruptcy proceedings.

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Material changes to the Italian bankruptcy law will likely result in increased interest of investors in the distressed market.

The Italian legislators passed significant amendments to the legal framework applicable to debt restructurings and bankruptcy proceedings with law decree No. 82/2015, subsequently converted, with amendments, in law No. 192/2015 (Law 192).

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Il Decreto Legge n. 83 del 27 giugno 2015, convertito dalla Legge n. 132 del 6 agosto 2015, pubblicata in Gazzetta Ufficiale il 20 agosto 2015 (la “Legge 132”) ha introdotto una serie di misure di sostegno per la crescita economica relative alle procedure pre-fallimentari, a quelle esecutive e a specifici benefici fiscali.

1. MODIFICHE ALLE PROCEDURE PRE-FALLIMENTARI

• Previsioni generali relative alla procedura di concordato preventivo

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Law Decree no. 83 of 27 June 2015, recently converted into Law 132/2015, which was approved on 6 August 2015 and published on the Official Gazette on 20 August 2015 (the “Law 132”) introduced a number of measures aimed at enhancing the economic growth mainly related to pre-insolvency procedures, enforcement procedures and fiscal benefits.

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The Tribunal of Modena with a decision of 6 June 2015 stated that a supplier can not refuse to perform its obligation and ask for the payment of previous claims by raising a non-fulfilment of the debtor’s obligations objection. Payment of such claims can then be made only after confirmation of the concordato by the Court.

The case

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The Tribunal of Milan, with a decision of 5 May 2015, ruled that Art. 104-ter of the Italian Bankruptcy Law is applicable to the lease of business entered into before the declaration of bankruptcy and, therefore, the receiver can terminate pending contracts according to Art. 72 of the Italian Bankruptcy Law

The case

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With the decision of 2 September 2015, No. 17461, the Court of Cassation confirmed that secured creditors’ deferred payment amounts to a partial satisfaction and has confirmed the criteria for determining the economic loss arising out of the delay, for allowing these creditors to vote.

The case

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Significant innovations have been introduced in Italy by Law Decree no. 83 of 27 June 2015 (entitledUrgent Measures on Insolvency, Civil and Procedural Matters and the Organization and Functioning of Judicial Commissioners (the "Decree").The Decree was converted by the Italian Parliament into statutory law no.132 enacted 6 August 2015 (the "Conversion Law").
  

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