By the Law 155/2017, that became effective on November 14, 2017, the Italian Parliament required the Government to adopt, within the next 12 months, a comprehensive and organic reform of insolvency proceedings and rules governing a business crisis. The rules governing liens and security interests will also be reformed.

Although the reform will not be converted into binding law before the end of 2018, foreign lawyers and investors may be interested in knowing the guidelines in advance.

A hotel property derives much of its value from its operator and brand. When a hotel owner is in distress with respect to its loan obligations, the operator also plays a critical role in the resolution of the workout process between the owner and the lender. The rights and obligations of the operator contained in its agreements with the owner and the lender affect any workout decision that the parties may make.