A ruling of the Court of Padua of 31 December 2016 is compared with few other known Court decisions regarding the extension of the effects of a debt restructuring agreement to dissenting financial creditors
The case
Two companies having an indebtedness mainly towards banks and leasing companies, jointly submitted to the Court a request for confirmation of a debt restructuring agreement providing for a two-year moratorium of payment of principal and a restructuring of interests.
I cd. NPL (non performing loans, letteralmente mutui non performanti) sono, sostanzialmente, crediti per i quali la riscossione è incerta, sia dal punto di vista del rispetto della scadenza originaria che per quanto riguarda l’ammontare del possibile recupero; essi sono anche detti, nel linguaggio bancario, crediti deteriorati.
Italy's latest law reforms continue with creditor-friendly amendments to support the local banking sector while providing confidence to investors.
Decree Law No. 59/2016 (the so-called "Banks Decree," hereinafter the Decree) was published in the Official Gazette (the Decree was later amended and converted into law by Law No. 119/2016) and has recently entered into force.
The so called “Banks Decree” Decree (Law Decree no. 59/2016, hereinafter the “Decree”), published on the Official Gazette and converted into Law no. 199/2016, has recently entered into force.
The main purpose of the Decree is to grant a partial reimbursement to investors of few local banks that were resolved in November 2015. However, the Decree has also introduced additional innovations which represent a further significant step in the Government’s effort of streamlining the credit recovery activities and implementing a more creditor-friendly environment.
Legge di conversione del “decreto sofferenze” (D.L. 59/2016)
In data 3 luglio 2016 è entrata in vigore la legge 30 giugno 2016 n. 119, di conversione del decreto legge n. 59 del 3 maggio 2016, al quale sono state apportate alcune rilevanti modifiche.
On May 4th, 2016, Law Decree no. 59/2016 entered into force with the name “Urgent provisions regarding enforcement and bankruptcy proceedings, as well as measures in favor of the investors of banks in liquidation”. Such decree introduced a variety of modifications aimed at facilitating and speeding up the debt recovery.
The two aspects with the higher impact concern the provisions regarding the seizure and the ones about the immediate enforceability of the orders of payment.
A law decree providing for urgent measures on guarantees, foreclosure and insolvency proceedings and aiming at restoring damages suffered by investors of banks under liquidation, was published on the Italian Official Gazette n. 59 on 3 May 2016 (the Decree). The Decree must be converted into law by the Italian Parliament by 2 July 2016 (i.e. within 60 days from the date of its publication) to become fully effective.
“Pegno mobiliare non possessorio”, an Italian floating security interest
During the last two years, the Italian government has focused on reforming the Italian lending market, with the aim of boosting access to financing for Italian businesses and improving bankruptcy and enforcement proceedings in Italy. As part of this reform process, the Italian Council of Ministers enacted Decree No.
Background
On 26 April 2016, the Italian Government has introduced a new reform to shorten the length of the recovery of credit, by approving the decree law no. 59 (the Decree), entered into force on 3 May 2016. The Decree aims at fostering and facilitating the recovery of credit throughout enforcement and insolvency proceedings.
The main innovations concern:
On May 3, 2016 the Italian government approved Law Decree No. 59 (the “Decree”) which, inter alia, provides for new types of security and introduces streamlined in-court and out-of-court enforcement procedures. In addition, the Decree mandates the setting up of a centralized electronic register for security enforcement proceedings and insolvency and pre-insolvency restructuring proceedings. The Decree aims to facilitate financings and secondary debt transactions by reinforcing creditors’ rights and providing more flexible instruments to lenders and borrowers.