Arrangement with Creditors, Competing Plans and Competing Bids

The Italian Law concerning business crisis was reformed after the adoption of the Legislative Decree dated 12 January 2019 No.14; the “new Code” will enter into force in the second semester of 2021. In the “new Code”—as in the discipline before the Reform—the Arrangement with Creditors is a form through which it is possible to overcome the crisis. A debtor filing in court for Arrangement with Creditors does not have the exclusive power to submit a restructuring plan; the rules allow the creditors to submit to the court a restructuring plan in competition with the debtor's restructuring plan.