A few years ago, the financial crisis which engulfed countries all over the world has affected a large number of companies and the same happened in Italy. There are also current situations in which Italian companies do not fare that well and they are required to undergo liquidation, however before starting winding-up procedures, restructuring is best option.
Company restructuring in Italy implies trying to adjust the expenses of a business in a manner in which it can save itself from going bankrupt. In order to help companies going through financial problems, the government has amended the Bankruptcy Law several times so that is provides for company restructuring options. Our company formation consultants in Italy can offer information on the current Bankruptcy Law.
Table of Contents
Restructuring options in Italy
The current legislation provides for two options for Italian companies seeking restructuring:
- – signing agreements with the creditors through which the debts of the companies are divided into installments;
- – creating a restructuring plan which helps business stay afloat during the reorganization of the company.
Our local agents can explain the two restructuring options for Italian companies. We can also help you open a company in Italy.
The restructuring plan in Italy
An Italian company can opt to appoint an independent evaluator who will assess the business’ debts and assets and based on these to come up with a solution through which the company can be saved. The restructuring plan will usually imply signing various agreements with creditors or contracting loans which will help the company pay its debts. The last method is also referred to as debt refinancing in Italy.
Restructuring agreements in Italy
The Italian legislation provides for certain requirements for companies going through restructuring and choosing to sign certain agreements which will ease the businesses’ financial burdens. Debt restructuring agreements imply:
- – the company must agree with at least 60% of the creditors on the methods used to repay the debts;
- – the agreement must be approved by an independent expert;
- – the plan must be approved by an Italian bankruptcy court.
For full information on how to restructure a company, please feel free to contact our company incorporation advisors in Italy.