Over-indebtedness

Code of corporate crisis and insolvency

Gabriele Felici Gabriele Felici

Legislative Decree n. 14 dated 12 January 2019, which includes the “Code of corporate crisis and insolvency”, entirely introduces in the new code the over-indebtedness procedures under Law n. 3 of 2012, with significant news in the relevant regulation.

The Code of Corporate crisis and insolvency was published in the Italian Official Gazette on 14 February 2019, implementing Law n. 155 dated 19 October 2017 (Legislative Decree n. 14 of 2019). The new code is the result of a long reform procedure of the bankruptcy law, which began in 2005-2006 and was concluded with the intervention of an ad-hoc commission.

In short, this new code represents a major change in the overall approach to the corporate and consumer crisis, which reforms the insolvency proceedings under Royal Decree n. 267 dated 16 March 1942 and includes, with amendments, those introduced by the regulation on the composition of over-indebtedness crisis as per law n. 3 dated 27 January 2012.