Debt Restructuring Agreements Entered Into By Real Estate Funds

According to recent Italian case law Real Estate Funds may now enter as debtors into the debt restructuring agreements (so called "accordi di ristrutturazione dei debiti") provided for by the Italian bankruptcy law.¹ Reference is made to Milan Court Decrees 6 November 2015 and 3 December 2015 (the "Case Law").²

Generally speaking under a debt restructuring agreement scenario a debtor undergoing a financial crisis may restructure its debts with the positive agreement of at least 60% of its creditors provided that the agreement's feasibility is confirmed by a professional together with the truthfulness of any debtor's data (so called "situazione aziendale"). The debt restructuring agreement becomes effective from the day it is published on the competent company's register and starting from publication day creditors whose claims arose prior to publication day cannot start or proceed with restraining actions or enforcement proceedings over the debtor assets nor acquire