[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN ITALY] 66
the assets and credits of the entrepreneur admitted to the insolvency proceedings acquired to insolvency estate. Otherwise, assets and rights of a strictly personal nature, maintenance payments, salaries, pensions, wages and what the debtor earns with his/her activity within the limits of what is needed for him/her and his/her family, things that cannot by law be foreclosed, etc. The property owned by third parties, co- affiliated or with guarantors, directed in some way to guarantee the bankrupt's obligations are also excluded from the application of the prohibition. With regard instead to the individuals to whom this prohibition refers, it is specified by the rules that the recipients are not only creditors who have accrued pre-judicial liquidation credits, but also creditors who become creditors during the judicial liquidation proceedings and this prohibition does not find the same application in all procedures and does not apply to rescue plans. In relation to the other proceedings, the effectiveness of this prohibition is regulated differently depending on the procedures and in particular: i) With reference to restructuring agreements, the suspension of the precautionary and executive actions on the debtor's assets is valid for sixty days from its publication in the Registry of companies; ii) Regarding composition with creditors, both for liquidation and conservative purposes, this prohibition applies from the date of publication of the appeal in the
66 Registry of companies and until the time the decree approving the composition with creditors becomes final; iii) Finally, in the event of judicial
liquidation, the provision applies from the day of the declaration of judicial liquidation for the entire duration of the judicial liquidation procedure. 2.3. Contracts pending in the composition with creditors. With reference only to the proceeding of the composition with creditors, the legislator for the debtor’s protection has provided the possibility for him/her to ask the Court the authorization to terminate contractual relations if they are still in force, (i.e., not yet fully executed nor by one, or by the other contractor) on the date of submission of the appeal for admission to the composition with creditors. This rule also applies against the will of the performing contractor. The authorization to the Court can be requested and granted when the suspension or winding up appear necessary or perhaps even only convenient to execute the composition with creditors plan. As an alternative to winding up, the debtor can also request the possibility of suspending the contract for a period of sixty days, which can be extended only once. 2.4. The Italian procedure for negotiated settlement. With the changes firstly made by the legislative decree n. 83/2022, and after with legislative decree 136/2024, new
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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