“Restore Liquidity” Decree: the entry into force of the New Code of business crisis and insolvency is postponed

Apr 20 2020

In the current macroeconomic emergency situation, the Italian Law Decree no. 23 of April 8, 2020, the so-called "Restore Liquidity” Decree, containing massive financial interventions to help companies, established the postponement to September 1, 2021 of the entry into force of most of the rules of the New Code of business crisis and insolvency contained in Legislative Decree no. 14/2019 originally scheduled for August 15, 2020.

The Government's decision is motivated by the fact that, giving birth to an instrument never tested before and studied to face, originally, only "ordinary" crises, could be, in this period of emergency, inappropriate.

The postponement is for the duration of one year and 16 days to avoid that, as the Government clarified, concrete application problems could arise, considering that with a one-year postponement, the date itself would have fallen in the middle of August, a period in which the judicial offices have reduced activity.

The new Code presents a main features and novelties on one hand the introduction of a widespread monitoring system with alert tools, internal and external to the company, in order to anticipate and allow a more timely and effective intervention to deal with situations of crisis; on the other, in situations where "bankruptcy" (in the new Code defined with the term "judicial winding up") is inevitable, a series of measures aimed at making this event less traumatic, promoting the culture of rescue at the expense of the elimination of insolvent companies from the market.

It should also be noted that part of the provisions of the new Code, in particular those which modify some articles of the Italian Civil Code concerning corporate organizational structures, the directors’ liability and the appointment of control bodies, have already entered into force on March 16, 2019.

Experts with a long range vision, ready to overcome barriers and take on new challenges in new professional environments. Up to date on developments in Italy and abroad.

EXP Contacts

  Via di Ripetta, 141
00186 - Roma

 +39 06 6876917

Via Fontana, 22
20122 - Milano

+39 02 30573573

 This email address is being protected from spambots. You need JavaScript enabled to view it.



EXP Legal ensures the continuity of its services

In expressing the utmost gratitude for all those who are devoting all their energy to assist the people affected by COVID-19 and the solidarity for the ones who are suffering its consequences, EXP Legal wishes to ensure its customers and partners that the Firm's activities will continue without interruption, in full compliance with the measures indicated by the competent authorities.

The Firm has implemented all the necessary precautionary means to allow professionals and staff to operate in a smart working regime (also thanks to the help of instant messaging and VoIP platforms such as Skype and Zoom) and is, therefore, able to respect the business needs of all customers.

While waiting for this critical phase for Italy to end as soon as possible, we would wish to assure you, therefore, that our legal and business advice and assistance will continue to be provided according to our best standards. We remain at your complete disposal and send you our best regards.


EXP Legal