Crisis management: RSM support for managing corporate financial crisis

Which are the enabling factors allowing a company to face a period of financial crisis?

How to solve insolvency and pay back debt to regain confidence by financial community, clients and suppliers?

How to guarantee basic activities for corporate continuity?

RSM Team Crisis & Forensic is a multidisciplinary team including crisis and forensic-audit experts, legal experts capable of answering these questions thanks to the experience acquired with crisis management to support companies, corporate groups and the bodies of the different kinds of procedures.

Our professionals:

  • are expert in financial crisis and accredited at main Italian lawcourts, they have performed as Advisors in composition with creditors, debt restructuring (ex art. 182 bis/ter) of Italian Bankruptcy Law, they have been working for years with special commissioners, commissioners and bankruptcy trustees of insolvency procedure, as well as with Prosecutor's Office and and Official Receivers;
  • they know in detail the set of activities to be implemented in different crisis conditions a company may face and how to execute them, facilitating dialogue with all counter parts involved into debt renegotiation procedure;
  • they assist and protect clients in crisis management and temporary and future insolvency of the company, using specific bankruptcy proceedings as defined in the Italian regulation.

RSM offer

Thanks to the detailed knowledge of the set of activities provided by the various bankruptcy proceedings - bankruptcy, composition with creditors, bankruptcy agreement, extraordinary administration procedure and LCA – our professionals’ activity facilitates dialogue with all counter parts involved into debt renegotiation procedures, leading to resource optimization in terms of both time and money.

Bankruptcy

Bankruptcy is now regulated by Regio Decreto of 16 marzo 1942, no 267, known as Italian Bankruptcy Law (“Legge Fallimentare”).

It is an insolvency proceeding following lawcourt ruling, declaring bankruptcy of insolvent entrepreneur. It aims at providing the payment of social creditors in the same conditions.

With the introduction of the new Codice della Crisi di Impresa e dell’Insolvenza /New Code of Company Crisis and Insolvency (contained in D.Lgs no 14/2019) the term “bankruptcy” will be progressively eliminated.

The objective is twofold:

  • preventing situations of crisis through the use of alert and monitoring system of the economic-financial situation of the company;
  • when bankruptcy cannot be avoided, the step to winding-up proceedings should be less traumatic

Here are the activities where we can support you:

  • inventory planning
  • preparation of starting requests of the proceeding
  • report preparation ex art. 33 L.F
  • forensic-audit on asset, economic and financial condition before bankruptcy declaration
  • assessment and drafting of liabilities
  • finding elements supporting bankruptcy revocatory action
  • preparation of bankruptcy distribution plan

COMPOSITION WITH CREDITORS (Going concern/Liquidation basis)

It is a judicial instrument provided by entrepeneur for solving business crisis and therefore avoiding bankruptcy statement.

In compliance art. 160 of the Legge Fallimentare any entrepeneur in situation of crisis can submit to social creditors a proposal for the payment of their credit based on a corporate or liquidatory continuity activity outlined in a economic-financial plan.

Arrangement with creditors aims at protecting the entrepeneur who can keep the administration of the company, the creditors whose credit is promptly repaid and the largest interest of the company to keep the business active and employment levels.

RSM Crisis & Forensic Team can support you in the following activities:

  • professional consultancy for preparing appeal for admission to composition with creditors
  • Consultancy in drafting the report of receiver
  • Checking the payment made in the period after the procedure has started
  • Checking the number, composition and the amount for each creditor
  • Review of the debt restructuring plan presented by debtor

 SPECIAL ADMINISTRATION PROCEDURE

Among insolvency procedures we find special administration procedure of large companies allowing continuation, reactivation or reconversion of entrepreneural activities.

Besides meeting the requirements under the current bankruptcy regulation, the appeal for admission to proceeding must follow specific employment and indebtness values, below which such procedures cannot be implemented by the debtor.

In such case RSM offer includes the following services:

  • preparation of starting report and periodical quarterly reports
  • preparation of the program and of detailed report on insolvency cause
  • assessment of liabilities
  • professional counseling and support in preparing compliance under Legge Marzano or Prodi-bis and bankruptcy regulation.

Others procedures (receivership, bankruptcy agreement)

RSM supports its clients also in the case of receivership and bankruptcy agreement. The former is a bankruptcy proceeding with liquidation purpose and can be applied to specific sets of businesses provided for by the law, among which banks and insurance companies. Receivership is carachterized by public function. Well before creditors, what is being protected is public interest dealing with nature or activity of the companies. Among the requirements for entering compulsory winding up proceeding one finds a public law nature or operating in sectors subject to public control or managing financial means given to large amount of subjects.

Bankruptcy agreement instead is a kind of bankruptcy definition, which happens through an agreement between creditors and the bankrupt subject or a third subject and in compliance with specific conditions.

RSM Crisis & Forensic team provides support:

  • in case of receivership, analyzing creditors’ issues and in reviewing liabilities of banks and insurance companies
  • in case of bankruptcy agreement:
  • to debtor in preparing bankruptcy plan
  • to curator in analyzing debtor’s proposal
  • to one or more creditors in preparing a bankruptcy petition

 

 

 

 

 

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Raffaele Salese
European Restructuring Co-leader

T: +39 02 83 42 14 90
Contact Raffaele

How can we help you?

.Contact us by phone +39 02 8342 1490 or submit your questions, comments, or proposal requests.

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