On January 10, 2019, the Italian government approved the Code
for Distress and Insolvency (Codice della Crisi d'Impresa e
dell'Insolvenza—the "CDI" ) as part of
Legislative Decree No. 14 of 2019, to replace the Italian
Bankruptcy Law of 1942. With certain exceptions, the CDI will enter
into force on August 14, 2020, unless amended by the Italian
Parliament prior to the effective date.
The CDI does not supersede the rules applying to the insolvency of
large companies (depending on the law involved, generally
enterprises with more than either 200 or 500 employees, with at
least €300 million in debt), which are subject to
"extraordinary administration" in accordance with: (i)
the "Prodi-bis law" enacted in the wake of the 1970s
industrial crisis and amended in 1999 to be compatible with
European law; and (ii) the "Marzano law," which was
enacted in 2003 to address some of the inadequacies of the
Prodi-bis law. A detailed discussion of Italy's
