The Pandemic as a Chance to Modernise Italian Insolvency and Restructuring Law

The pandemic exerted a profound influence on Italian insolvency and restructuring law. In 2020, after several years of preparation, wide-ranging reform, whose focus was to enhance the judicial management distress, about enter into force in Italy. that context, there were two events inducing radical rethinking reform: duty transpose Directive (EU) 2019/1023 (which legislature had largely overlooked while devising project for reform). result has been set rules more restructuring-friendly, partly initially conceived as response Covid-19 emergency, but preserved also post-pandemic framework. Difficult challenges lie ahead, main one being heavy legacy State-guaranteed corporate loans, which an ad hoc scheme developed. A significant lasting consequence legislation enacted during is suspension ‘recapitalise or liquidate’ rule, law system traditionally relied crisis detection purposes. This paradigm shift comes at same time increased emphasis early financial distress increase directors’ responsibility this regard.