Proposed changes in Italian law mean that it should become easier to create certain types of security in Italy and to recover debt. The relevant law is Decree-law no. 59/2016 (“Urgent provisions on insolvency and executive procedures’’) which came into force on 4 May 2016 and which should be converted into binding law by early July.

The main changes introduced by the Decree are as follows:

È stata pubblicata sulla Gazzetta Ufficiale n.153 del 2 luglio 2016 la legge di conversione n. 119/2016 (la Legge di Conversione) del Decreto Legge n. 59/2016 recante “Disposizioni urgenti in materia di procedure esecutive e concorsuali nonché a favore degli investitori in banche in liquidazione” (il Decreto). Di seguito una breve descrizione delle misure più rilevanti come modificate in sede di conversione in legge.

Una nuova forma di garanzia, il “pegno mobiliare non possessorio”

Conversion law of “Decreto Sofferenze” (D.L. 59/2016) 

On 3 July, 2016, Law Decree no. 59 of 3 May 2016 was converted into Law no. 119 of 30 June 2016, through various amendments.

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. 

Introduction

The Italian Supreme Court (5 July 2016, No. 13719) issues a maiden decision on the conditions for theprotection afforded by restructuring plan to stand if the plan fails and bankruptcy is declared

The case

On May 4^th, 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.

E’ stato pubblicato sulla Gazzetta Ufficiale n. 59 del 3 maggio 2016 il Decreto Legge recante “Disposizioni urgenti in materia di procedure esecutive e concorsuali nonché a favore degli investitori in banche in liquidazione” (il Decreto). Il Decreto dovrà essere convertito in legge entro il 2 luglio 2016 (60 giorni dalla data di pubblicazione). Di seguito una breve descrizione delle misure più rilevanti.

Una nuova forma di garanzia, il “pegno mobiliare non possessorio”

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.