Debt restructuring agreement
A company with solid industrial foundations may find itself in a liquidity crisis due to an unsustainable debt exposure.
In these scenarios, the risk is not only of failing to pay creditors, but of paralysing the entire business, blocking investments and jeopardising business continuity.
L'debt restructuring agreement is one of the most powerful and effective tools made available by the Crisis and Insolvency Code for companies that are in difficulty but have real prospects of recovery.
This is a formal route that allows debts to be rescheduled through a restructuring plan agreed with the main creditors and approved by the Court.
Studio Cappuccio assists the entrepreneur in negotiating and drafting debt restructuring agreementsturning a crisis situation into an opportunity for strategic revitalisation.
What is a debt restructuring agreement?
L'debt restructuring agreement is an out-of-court contract concluded between an entrepreneur in crisis and his creditors, aimed at modifying payment deadlines, amounts and terms.
Its fundamental characteristic lies in two key requirements:
- The accession of creditors: The plan must be approved by creditors representing at least the 60% of the total amount of the claims.
- The certificate of feasibility: The proposal must be accompanied by the report by an independent professional (asseverator) who certifies the veracity of the data and its practical feasibility, and also ensures that creditors outside the agreement can be paid regularly.
Once an agreement is reached, it is submitted to theCourt approvalwhich makes it effective and binding also on creditors who have not joined it.
The benefits of a debt restructuring plan
Resorting to a restructuring agreement offers strategic advantages to overcome the crisis and safeguard corporate assets.
- Binding effectiveness: Court approval extends the effects of the agreement also to dissenting creditors, ensuring a final and global solution to the debt crisis.
- Protective measures: From the moment the agreement is published in the Commercial Register, the automatic blocking of enforcement and precautionary actions by creditors, giving the company the breathing space it needs to implement the plan.
- Operational flexibility: The plan may provide for various manoeuvres, such as a moratorium on payments, debt reduction (balance and write-off), conversion of credit into equity, or the sale of non-strategic assets.
- Maintaining continuity: Unlike other procedures, the primary objective is to reorganise the company and ensure its continuity on the market, protecting know-how, jobs and company value.
Who this tool is aimed at
The debt restructuring agreements are the ideal solution for:
- Companies in a state of crisis or insolvency that still have the capacity to generate positive cash flows.
- Companies with a significant and concentrated debt exposure to a limited number of creditors (e.g. banks and financial institutions).
- Entrepreneurs seeking a more structured and definitive solution than the negotiated settlement, with binding effects for all.
The role of Studio Cappuccio in the restructuring agreement
The complexity of these restructuring agreements requires in-depth financial and legal expertise.
Our firm, as advisors and forensic professionals, intervenes at all crucial stages:
- Due Diligence and Preliminary Analysis: We perform an in-depth analysis of company data to assess the sustainability of a restructuring path.
- Drafting the Debt Restructuring Plan: We elaborate the business plan that forms the basis of the agreement, defining the industrial strategies and repayment modalities.
- Negotiation with Creditors: We assist the entrepreneur in delicate negotiations with counterparts (mainly banks and strategic suppliers) to obtain the necessary membership.
- Asseveration Activities: We can play the role of independent professional who draws up the attestation report required by law to accompany the plan.
Our approach guarantees technical rigour and strategic vision, indispensable elements for transforming the debt restructuring agreements into a success.
