Executory contracts in insolvency: The Italian perspective

Abstract

The chapter offers an overview of the discipline regarding the executory contracts under Italian Law in Bankruptcy, Arrangements with Creditors based on Liquidation, and Arrangement with Creditors on a Going Concern Basis procedures. Given the different goals pursued by each of these procedures, the relevant rules are substantially dissimilar. Obviously, the different goals affect the treatment of executory contracts, since different rules apply depending on whether a liquidation or a reorganization proceeding is commenced. The chapter also points out that the Italian Insolvency Law is under a review from a global viewpoint. This new discipline will provide corrections and integrations regarding the rules on executory contracts, in both Bankruptcy and Arrangement with Creditors, but it is possible to say that the structure of the Law, and its principles will not significantly change the overall discipline on executory contract.