Cash flows arising from the continuation of operations in the event of a composition agreement

Venice Court of Appeal, 05/07/2021. Presiding Judge Taglialatela, Reporting Judge Valle. The Court ruled on the allocation of cash flows arising from the continuation of business activities in the composition agreement with creditors should the company be leased, stating that related fees, like dividends of the investee companies and the higher realizable value of the property falling outside the legitimate causes of pre-emption, deprives the composition plan of the necessary legal feasibility prerequisite, with the consequence that the realization of assets generated by business management, such as cash flows resulting from continuation of business, are part of the debtor’s assets.