For a company, the state of crisis is not just a question of numbers, but of confidence. The pressure from suppliers, the uncertainty of the banks and the fear of no longer being able to guarantee the company's future create an unsustainable situation that, if not managed, leads straight to judicial liquidation.
The composition with creditors is the main insolvency procedure that the Insolvency and Crisis Code offers companies to overcome insolvency.
It is not a surrender, but a legal instrument aimed at reorganising the company through a plan proposed to creditors and supervised by the court, the primary objective of which is, where possible, the safeguarding business continuity.
Studio Cappuccio, as financial advisor and certifier, supports the entrepreneur in the construction of a solid and credible plan of arrangement, to protect the value of the company and restructure the debt in a definitive manner.
What is an arrangement with creditors?
The composition with creditors is a court procedure by which a company in a state of crisis or insolvency proposes to its creditors a plan to satisfy their claims in a lower amount or with a delayed schedule.
Unlike an out-of-court settlement, the entire procedure takes place under the control of the court.
The central element is the composition planwhich may provide:
- Business continuity: The company continues its business, even indirectly (e.g. by leasing a business), using future cash flows to repay creditors. This is the preferred route under the law.
- The liquidation of assets: The company ceases operations and its assets are sold to satisfy creditors.
If the plan is approved by a majority of the creditors and receives thehomologation by the Court, it becomes binding on all creditorsincluding those who voted against.
The benefits: protecting the company and clearing the debt
Start the composition with creditors offers the entrepreneur decisive tools to manage the crisis and not suffer it.
The main advantages are:
- Automatic stay (blocking of actions): From the moment the application is filed, no creditor may initiate or continue enforcement or precautionary actions on the company's assets. The company is protected from foreclosure and bankruptcy petitions.
- Suspension of payments: The company can suspend payment of pre-procedure debts, freeing up liquidity to support current operations.
- Obtaining new finance: It is possible to apply for 'predeductible' financing, i.e. to be repaid in priority to all other creditors, to support the financial needs of the plan.
- Debt Restructuring: The plan allows debt exposure to be renegotiated in a structural manner, through write-offs, deferrals or the conversion of debt into financial instruments.
To whom our service is addressed
Our consulting service on the composition with creditors is aimed at all commercial enterprises (S.r.l., S.p.A., etc.) that are in a state of crisis or insolvency, but have assets or industrial prospects such that they can make a proposal to creditors. In particular:
- Companies with high debt exposure to banks, suppliers and tax authorities.
- Companies that have a viable business but are suffocated by an unsustainable financial structure.
- Companies that need legal protection in order to implement a profound reorganisation plan.
The role of Studio Cappuccio in the arrangement procedure
The success of a composition agreement depends on the technical rigour and credibility of the plan.
Our firm, with its forensic expertise, plays a crucial role at every stage:
- Feasibility analysis: We carry out an in-depth diagnosis of the company's state of health in order to assess the viability of the concordat route.
- Drafting of the composition plan: As advisor, we draw up the business plan, defining reorganisation strategies, expected cash flows and how creditors will be satisfied.
- Attestation activities (Asseveration): As an independent professional, we can draw up the attestation report certifying the veracity of the company data and the feasibility of the plan, a document required by law.
- Assistance in negotiations: We support the entrepreneur in the dialogue with creditors and the bodies in the procedure (Court Commissioner, Court).
Our aim is to guide the company through this complex procedure in order to maximise the chances of recovery and asset protection.
Studio Cappuccio can also be contacted for:
- Debt restructuring agreement
- Negotiated crisis resolution
- Other forensic activities
