[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN ITALY] 65
credits admitted to the vote is required. Furthermore, while in the framework of debt restructuring agreements and the composition with creditors there is the possibility of entering into a so-called tax settlement, i.e., an agreement with qualified creditors for the payment, partial or even deferred, of taxes and related accessories. This possibility is excluded in the rescue plan. Another difference concerns the control of the judicial authority. In fact, while in the rescue plan there is no provision for judicial review, both in the composition with creditors and in the restructuring agreements, there is the intervention of the judicial authority and in particular , in the restructuring agreements there are minimal procedural aspects and the Court's control but not in the executive phase; in the composition with creditors there is, instead, a keen control of the judicial authority in every phase. On the other hand, with reference to judicial liquidation and to composition with creditors for liquidation purposes, the most important difference is that while with the composition with creditors, the entrepreneur keeps the administration of his assets and the business under the supervision of the judicial commissioner, with the judicial liquidation the debtor loses the management of the company that is deferred to the insolvency practitioner appointed by the competent Court. 2. The protection granted to the debtor against its creditors. From this point of view, it is possible to conduct a joint analysis of the procedures, since the protections put in favor of the debtor towards the creditors are almost applicable to all the procedures.
65 2.1. Irrevocability of deeds, payments and guarantees. First of all, the provision for which, in the event of subsequent judicial liquidation, the deeds, payments and guarantees put in place in execution of i) rescue plan, ii) restructuring agreement, iii) composition with creditors cannot be subject to claw back action. Article 67 letter d) and f) of the Royal Decree, in force until September 2021, in fact established that are not subject to the claw back action: deeds, payments and guarantees granted on the debtor's assets if implemented in execution of a plan that appears suitable to allow the reorganization of the debt exposure of the company [...] "and the deeds, payments and guarantees put in place in execution of the composition with creditors [...], as well as the approved agreement pursuant to article 182bis, as well as the deeds, the payments and guarantees legally put in place after the filing of the appeal pursuant to article 161 The article 67 of royal decree has been replaced from article 165 and following of code of crisis. 2.2. Prohibition to continue or initiate precautionary and executive actions on the debtor's assets. As a guarantee for the debtor, it is forbidden to continue or to start exercising individual precautionary and executive actions on the debtor's assets. Preliminarily, it is necessary to clarify what is meant by " debtor's assets" and to which creditors the above-mentioned prohibition refers. With reference to the first aspect, it can be stated that " debtor's assets " means
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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