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The collective proceedings of the Italian Bankruptcy Law may be applied to in-house companies

  • 13/03/2017

According to Legislative Decree no. 175 of 19th August 2016 on government-owned corporations, in-house companies are those over which a public entity exercises a control similar to that which it exercises over its own departments, and so decisively influences both their strategic objectives and their significant decisions.

With Judgment no. 3196 of last 7th February, the Supreme Court of Cassation has explained that the provisions of the Bankruptcy Law may be applied also to government-owned companies, even if such companies are subject to special rules. According to the Court of Cassation, this entails that in-house companies may be declared bankrupt.

Following the said judgment, the Court of Livorno, with a Decree of last 8th March, has for the first time ratified a petition for composition with creditors (so-called “concordato preventivo”) proposed by an in-house company, which was conferred the management of local services.

Therefore, the special rules for government-owned companies do not derogate from the provisions, on behalf of third parties, regulating the collective proceedings.

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