Composition legitimacy verified by the Court

The Italian Supreme Court, Civil Section I, with Order no. 13224 of 17/05/2021, confirming the approach expressed, inter alia, by the previous jurisprudence on legitimacy, including Italian Supreme Court decision no. 11522 of 15/06/2020, after the amendments made to art. 160, paragraph 4, of the Finance Law by Law Decree no. 83 of 2015, converted with amendments into Law no. 132 of 2015, ruled on the legitimacy verification that rests with the Court, specifying that:

On the subject of composition with creditors, paragraph 4 of article 160 of the Insolvency Law, introduced by Law Decree No. 83 of 2015, converted with amendments into Law No. 132 of 2015, in providing that, except for composition involving business continuity, the proposal must ensure in any case the payment of the minimum threshold of at least twenty percent of the amount of unsecured loans, it defines the scope of the control of legal feasibility entrusted to the court, requiring it to verify the effectiveness of the plan with respect to the achievement of a result that necessarily provides for the satisfaction of unsecured creditors in the indicated percentage. (In the case in point, the Italian Supreme Court overturned the decision of the Court of Appeal, according to which, at the time of approving the proposal for a composition with creditors, it was up to the creditors to assess the suitability of the latter in order to ensure payment of the minimum threshold of unsecured credits).