Restructuring Plan under Art. 67 of the Italian Bankruptcy Law (“l.fall.”)
The Company may approve a plan with the aim at reinstating a balanced financial situation of its accounts and to restructure its indebtedness, thereby returning to solvency. In order to be eligible for protection under a Restructuring Plan, the Company must remain in business and continue operating.
The plan may provide an agreement with some creditors or third parties (e.g. for the sale of assets) or internal measures to regain efficiency of the business.
The plan must be validated by an expert which does not need to be appointed by the Court, who shall confirm that the plan is reasonable. No Court approval or scrutiny is required.
Actions, payments and guarantees provided in the plan are exempted from the avoiding powers of the receiver in case of subsequent bankruptcy. The Directors may also be protected against civil and criminal liability if the plan fails.