Company rescue
A company may find itself in difficulties due to a combination of internal and external, territorial, economic and environmental factors, none of which should be overlooked if the symptoms of the crisis are to be revealed as quickly as possible and the most appropriate solutions are to be identified and implemented. In recent years, legislators have presented a number of significant proposals aimed at the judicial acknowledgment of a state of “company crisis”, rather than merely dealing with situations of an “irreversible” nature. At the present time, various solutions may be adopted, including the most elastic and rapid out-of-court remedies aimed at the restructuring and recovery of the enterprise, in addition to the normal judicial procedures. The professional specialists at Sofiæ – Solidoro Finulli & Partners have offered and continue to offer their support to the businesses in crisis which gain access to an insolvency or out-of-court procedure, or make use of expert assistance for the certifications required under articles 56, 57, 62, 63, 64 bis, 87, 88 of the legislation on company crises and insolvency (C.C.I.I.). More specifically, Sofiae operates as financial advisor in the drafting of the plan and the related agreements, the handling of the negotiations with the body of creditors, and the drafting of the legally mandatory certifications in its position as an officially designated expert. The professional specialists at Sofiæ also operate as experts in negotiated arrangements with creditors and as official court-appointed receivers in compulsory liquidation procedures.
Crisis settlement agreements
From 2022 onwards, enterprises in a situation of equity, economic or financial unbalance which could probably lead to a crisis or state of insolvency but which have reasonable prospects of recovery may gain access to the new negotiated crisis settlement agreement procedure managed through a specific Chamber of Commerce platform. The professional specialists at Sofiæ – Solidoro Finulli & Partners operate as experts appointed by the Chamber of Commerce to assist with the negotiations between the debtor and its creditors, and to act as the advisor to the business in the drafting of the recovery plan and the proposal for a settlement agreement to be presented to the creditors.
Certified recovery plan and restructuring agreement
By virtue of the new bankruptcy regulations, in the case of a reversible company crisis it is possible to adopt a number of solutions, including certified recovery plans and restructuring agreements, which not only satisfy the creditors but also conserve and recover the value and profits of the company – in whole or in part – as a going concern. The certified recovery plan is the first action aimed at resolving the crisis by means of a gradual process. This initially remains entirely in the hands of the company itself, which may, if the rescue strategy has been unsuccessful, later move on to debt restructuring agreements or a formal composition with creditors.
Composition with creditors
The aim of the composition with creditors, which in certain respects is more flexible and suitable for the most serious difficulties, up to and including insolvency, is not merely to satisfy the creditors with a view to guaranteeing the company as a going concern, but also extends to the activities of the liquidators, through the assignment of assets by way of preparation for the compulsory liquidation of the enterprise. The professional specialists at Sofiæ operate as official receivers in the composition with creditors procedure, and have also assisted many corporations in drawing up and managing their plans in that sense, inclusive of certifications confirming the truthful nature of the company details and the feasibility of the plan.
Official receivership
If the company crisis is irreversible and the enterprise is insolvent, the judicial authorities set up insolvency procedures aimed at liquidating the equity and distributing the proceeds to the creditors in accordance with the principle of par condicio, or equal status, subject to the legitimate causes of pre-emption. The professional specialists at Sofiæ have worked on a large number of procedures in the position of receiver, and have assisted insolvent enterprises in the drafting of their receivership applications in situations where the conditions for access to alternative procedures are not satisfied.