of Florence, Bankruptcy Section ruled on the admissibility of an application
for an arrangement with creditors in light of the legislative amendment
introduced in the summer of 2015 with the Decree dated 11 November 2015 and
published on 8 January 2016.
In the case
in question, the application for an arrangement with creditors was filed on 29
July 2015, between the entry into force of Decree-Law No. 63 of 27 June 2015
and its conversion - with amendments - into Law No. 132 of 6 August 2015.
Florentine Court found that this case under its review met the requirement
under Art. 161, second paragraph, letter e), last sentence of the Bankruptcy
Act, introduced by the 2015 amendment ("in any case, the proposal must indicate the specifically identified and
economically assessable utility which the applicant undertakes to ensure each
creditor"), since the applicant company had specified in detail the
utility of implementing the plan and also ascribed an economic value. In this
instance, the company had shown the "benefits" that could be achieved
compared with bankruptcy.
then verified, considering the issue in terms of legal feasibility, the
percentage of satisfaction guaranteed to unsecured creditors by the plan in
light of Art. 160, paragraph four of the Bankruptcy Act, according to which
"In any case the arrangement
proposal must ensure payment of at least 20 percent of unsecured credit claims",
specifying exactly that "the debtor
must justifiably propose payment of
at least 20% of the amount of unsecured credit where "justifiably" should
be considered as halfway between the concept of guarantee and that of
case, the proposed arrangement envisaged the satisfaction of unsecured
creditors to the extent of 59.79%, and stated that, "in any case [...] the debtor will insure its creditors at least 20%."
In light of this, the Court of Florence deemed that
all the requirements laid down by the amended Art. 160 and Art. 161 of the
Bankruptcy Act had been met and, considering the proposal as "sufficiently serious" and therefore
admissible, declared the arrangement with creditors procedure open.