Under the Italian business crisis code, insolvency is the centre of gravity of the procedure: persistent tax debts are often the signal that triggers it.
The opening of liquidazione giudiziale (judicial liquidation, the Italian successor to bankruptcy) may also be applied for by the public prosecutor where they learn of a state of insolvency.
Articles 37 and 38 of Legislative Decree 14/2019 confer standing on the debtor, the creditors and the public prosecutor; a court that becomes aware of insolvency in the course of proceedings must report it to the prosecutor. Substantial and unmanaged tax exposures are among the factors that most frequently bring a crisis to the attention of the public authorities.
For directors, prudence requires continuous monitoring of the crisis indicators and the timely activation of the available restructuring tools, from the composizione negoziata (negotiated settlement procedure) to the mechanisms for settling tax debts. The network supports businesses and their control bodies in assessing the health of the company and in choosing the right instrument.