Italy's insolvency legislation has undergone significant revision, with key provisions now in force. International creditors and companies operating in Italy face tighter procedural deadlines and altered priority rules. Failing to respond promptly risks losing enforceable claims entirely.
Italy's revised insolvency legislation, which entered into force in stages through 2024 and early 2025, reshapes the rules governing insolvency proceedings for all commercial entities. Creditors must now file a formal proof of debt within shortened deadlines or risk exclusion from distributions. The amendments apply to any company meeting the statutory thresholds under Italian insolvency law.
This alert sets out exactly what changed, which business categories are affected, when compliance is required, and what international companies must do immediately to protect their positions.
What changed and when it takes effect
Italy's insolvency legislation was comprehensively overhauled to align with the EU Directive on restructuring and insolvency. The revised rules entered into force on a rolling basis, with the final tranche of amendments effective from mid-2024. Further implementing measures came into operation in early 2025.
The core changes affect four areas. First, the concordato preventivo (preventive arrangement with creditors) procedure has been restructured. Debtors now have access to a broader set of tools to propose a restructuring plan before formal insolvency is declared. Second, the role of the curatore fallimentare (insolvency administrator) has been expanded. The administrator now holds wider powers to challenge pre-insolvency transactions and to manage asset disposals independently of the court in certain circumstances.
Third, creditor voting rules at the creditors meeting have changed. Creditors are now grouped into classes based on the nature and priority of their claims. A restructuring plan can be approved even where one or more classes vote against it, provided specific cross-class confirmation conditions are met. This is a material departure from the prior unanimous-class approval requirement.
Fourth, the deadline for filing a proof of debt has been shortened in liquidation proceedings. Creditors previously had a more generous window. Under the amended rules, the filing period can now be as short as 30 days from the date of the court's opening order. Missing this deadline generally results in late-filing status, which carries lower priority in distributions.
The liquidatore giudiziale (court-appointed liquidator) retains the power to accept or contest late claims, but contested late claims are subject to additional procedural steps that delay any recovery.
Who is affected and which thresholds apply
The amended rules apply to all commercial entities incorporated or operating in Italy that meet the statutory insolvency thresholds. Those thresholds are assessed across three criteria: total assets, annual revenues, and total indebtedness. An entity that exceeds any two of the three criteria falls within the scope of the full insolvency regime.
International companies are affected in three specific scenarios. First, any foreign company with a branch or permanent establishment in Italy is subject to Italian insolvency proceedings in respect of Italian-based assets. Second, any foreign creditor holding a debt claim against an Italian debtor must file a proof of debt in the Italian proceedings if it wishes to participate in distributions. Third, parent companies of Italian subsidiaries face potential exposure where intercompany claims are classified by the administrator as subordinated or related-party debt.
Financial institutions, trade creditors, and bond or note holders are all affected. Secured creditors must verify that their security interests are properly registered and enforceable under Italian law before the administrator's asset-disposal programme begins. Unregistered or improperly constituted security may be treated as unsecured for distribution purposes.
Companies in the manufacturing, real estate, retail, and hospitality sectors have seen the highest volume of new filings under the revised rules. However, the procedural changes apply across all sectors without exception.
For a detailed assessment of your exposure under Italian insolvency proceedings, contact our team at insolvency and restructuring services in Italy or email info@ferrazwhitmore.com.
Immediate actions required
International companies and creditors should take the following steps without delay.
- Audit existing Italian counterparty exposure. Identify all Italian debtors and determine whether any are subject to insolvency proceedings or show early warning signs under the new early-warning system introduced by the reforms.
- Verify proof of debt filing deadlines. For any ongoing proceedings, confirm the precise deadline set by the court's opening order. The 30-day window can expire quickly once notice is received.
- Review security interests. Confirm that all collateral over Italian assets is properly registered in the relevant Italian registers. Engage local counsel to verify enforceability before the administrator begins disposals.
- Assess intercompany claim classification. Where a parent or affiliate holds a claim against an Italian group entity in insolvency, seek early advice on whether the claim risks subordination as a related-party debt.
- Engage with the administrator promptly. The insolvency administrator has broad powers under the revised rules. Early engagement – including submission of claims documentation and correspondence regarding asset preservation – can materially affect the outcome for creditors.
Companies facing corporate disputes arising out of insolvency-related transactions should also review their position under the rules on avoidance actions. The administrator's powers to challenge transactions concluded in the period before insolvency have been strengthened. Related-party transactions concluded within a longer look-back period are now presumptively challengeable. For connected matters, see our analysis of corporate disputes in Italy.
Practitioners advising international clients note that the amended early-warning obligations also create risk for directors. Companies that fail to activate the early-warning system when financial distress indicators are present may expose their directors to liability claims brought by the administrator after insolvency is opened. This is a non-obvious risk that many foreign-based boards overlook until proceedings are already underway.
Comparable developments have occurred in other EU jurisdictions. For context on how the same EU Directive has been implemented elsewhere, see our alert on insolvency amendments in Portugal.
About Ferraz & Whitmore
Ferraz & Whitmore is an international law firm based in Lisbon, advising business clients across 46 jurisdictions. Our insolvency and restructuring practice covers cross-border proceedings across Europe, supporting international creditors, administrators, and corporate groups navigating Italian and EU insolvency law. We combine Portuguese civil law expertise with English common law tradition to deliver practical, results-oriented counsel. As an international law firm in Italy and across Europe, we work with in-house legal teams, institutional investors, and international entrepreneurs who need coordinated advice when insolvency proceedings cut across multiple legal systems. Our attorneys have advised on restructuring plan negotiations, proof of debt filings, and administrator challenge proceedings in both civil law and common law jurisdictions. To discuss your exposure under the revised Italian insolvency rules, contact us at info@ferrazwhitmore.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.
Author: Daniel Ferreira
Author title: Managing Partner
Author bio: Daniel Ferreira is a Managing Partner at Ferraz & Whitmore with over 18 years of experience in Portuguese and European corporate law, M&A transactions, and cross-border restructuring. He advises international businesses on market entry, regulatory compliance, and dispute resolution across the EU and Atlantic jurisdictions.
Published: February 05, 2026