The Insolvency Regime for Large Enterprises in Italy: An Economic and Legal Assessment / Nazim Belhocine, Daniel Garcia-Macia, Jose Garrido.

Format:

Book

Government document

Author/Creator:

Belhocine, Nazim.

Contributor:

Garcia-Macia, Daniel.

Garrido, Jose.

International Monetary Fund, issuing body.

Series:

IMF Working Papers; Working Paper ; No. 2018/218

IMF Working Papers

Language:

English

Subjects (All):

Bankruptcy--Italy.

Bankruptcy.

Corporations--Italy--Finance.

Corporations.

Commercial law--Italy.

Commercial law.

Italy--Economic policy.

Italy.

Physical Description:

1 online resource (35 pages)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2018.

Summary:

The modernization of Italy’s insolvency framework has been the subject of much interest in recent years, related not least to its role in potentially facilitating an efficient allocation of resources. A unique feature of Italy’s insolvency framework is a special regime for large enterprises known as “extraordinary administration”. This paper evaluates the merits of this special regime by assessing its efficacy and success in achieving its stated goals and comparing its features to international standards and best practices. It finds that the special regime tends to impose large costs on creditors and the state. The regime results, in most cases, in the sale of parts of the group, followed by a liquidation phase of the remaining assets which can take longer than the general regime, hindering legal certainty for creditors and more generally economic efficiency, investment and job creation. Based on international best practices and experience, consideration should be given to folding the special regime into the general insolvency regime, possibly with provisions to allow for state intervention in specific well-defined circumstances.

Contents:

Cover

TABLE OF CONTENTS

ABSTRACT

I. INTRODUCTION

II. OVERVIEW OF THE REGIME

A. Origins and Evolution

B. Standard Versus Extraordinary Insolvency

C. Extraordinary Administration for Large Groups (Prodi-bis)

D. Extraordinary Administration for Very Large Groups (Marzano)

III. DATA SOURCES

IV. EMPIRICAL ANALYSIS

A. Non-Financial Characteristics of Companies Undergoing Special Insolvency

B. Financial Characteristics of Companies Undergoing Special Insolvency

C. Uses of the Special Regime and Its Efficiency

V. ASSESSMENT OF THE REGIME

VI. LESSONS AND RECOMMENDATIONS

REFERENCES

BOXES

1. EU State Aid Rules and the Italian Special Insolvency Regime

2. The Marzano Law Through the Parmalat and Alitalia Case

3. Social Security Support to Extraordinary Administration Proceeding

ANNEX

I. Summary Outcomes of Marzano and Prodi-bis Regime.

Notes:

Includes bibliographical references.

Description based on publisher supplied metadata and other sources.

Description based on print record.

ISBN:

9781484379141

1484379144

9781484379172

1484379179

OCLC:

1059403499