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At CE Interim, we support complex cross-border restructuring by drawing on the strength of our global network, including elite partners from the Valtus Alliance. From Austria to India, every country brings its own legal frameworks, timing challenges, and execution style. Italy is no exception.

In this expert conversation, Christophe Mare (Partner, Valtus France) interviews Maurizio Ria (Managing Director, Duke & Kay, Milan) to explore how Italy’s modern insolvency law, the CCII, is reshaping turnaround practice.

What makes Italy’s restructuring framework unique today?

The New Italian Bankruptcy Law (CCII), or Codice della Crisi d’Impresa e dell’Insolvenza, is a fairly recent development. It introduces a progressive, layered approach to insolvency resolution.

Depending on the level of distress, businesses can choose from lighter out-of-court tools like Composizione Negoziata della Crisi, or opt for formal proceedings like Concordato Preventivo.

The framework is designed to offer timely intervention and match the company’s needs with the right legal mechanism. It’s a modern shift that gives restructuring professionals the room to act with precision and pace.

Are companies required to report early warning signs?

Yes, and the responsibility is serious. Board members and statutory accountants are legally bound to monitor the company’s financial health. Ignoring signs of distress can trigger prosecution.

The CCII requires all companies to track their “covenant health” to identify trouble early. It’s not just recommended, it’s enforced.

What’s the most common mistake made in early-stage liquidity crises?

Delay. Many Italian companies are SMEs, often family-owned, with less than €50 million turnover. Owners frequently try to fix issues alone, hoping things improve. But this delay narrows options.

The longer action is postponed, the harder and costlier recovery becomes. That’s why the law now includes penalties for inaction.

When should a restructuring expert be brought in, and who usually appoints them?

Ideally, much earlier than they currently are. By the time an interim expert is called, the situation is often already severe. Multiple parties may trigger the call – the board, shareholders, banks, or PE sponsors.

In these cases, the CRO role is critical. The Chief Restructuring Officer must be an empowered, business-savvy executive, ideally joining the board and collaborating with legal and financial advisors. They drive decisions and execution with urgency.

Sometimes, a restructuring-specialist CFO may lead instead, acting as the operational bridge across stakeholders. In complex cases, we deploy full teams to cover legal, financial, and operational axes.

Does Italy offer a protective shield like other countries?

Yes, but it must be court approved and linked to a specific restructuring procedure under the CCII. Once granted, this shield freezes creditor actions, allowing time to stabilize operations and build a viable plan.

This legal pause can be the difference between collapse and recovery.

Are employees protected in insolvency situations?

Largely, yes. Wages and salaries are considered super-senior claims, meaning they are paid before most other debts. Additionally, mechanisms like Cassa Integrazione and NASPI provide state-backed income support.

How do interim managers ensure they get paid during a restructuring?

If the manager is court-recognized as part of the formal plan, they may gain privileged fee status. That’s why it’s essential to align early with the court and advisors. Recognition strengthens both the legal standing and payment priority of interim professionals.

Can you share a personal restructuring case that shaped your thinking?

My first major turnaround came when I was just 29. It was chaotic and high-stakes, but in the end, we saved the business. I still remember the look on employees’ faces when they realized their jobs were safe.

Over time, I’ve built on that experience with formal training and cross-functional leadership roles. Today, our teams draw on these lessons to drive results in every new project.

How collaborative are the courts, management, and creditors in Italy?

Italy has a tight-knit restructuring community. Professionals tend to know each other, and there’s shared experience. However, local courts can sometimes interpret the same law article differently. These inconsistencies can slow things down.

We mitigate this by studying court precedents carefully, allowing us to build legal strategies that align with each jurisdiction’s habits.

What role does private equity play in Italy’s restructuring landscape?

PE plays a growing role, especially turnaround funds that acquire distressed bank loans at a discount. These firms inject capital, replace governance, and execute recovery plans. Typically, they target a 3-year fix and exit cycle.

Original shareholders are usually diluted or exit entirely, but the company often emerges stronger, with new leadership and financial structure.

Does the Italian government support companies in crisis?

Yes, through initiatives like Patrimonio Rilancio and state guarantees for bank-backed loans. These are conditional and often linked to PE-led recovery plans. The support mechanisms exist, but companies must meet strict criteria and show turnaround potential.

Italy’s evolving legal framework offers both structure and flexibility – but timing remains everything.

If your company is operating in Italy and showing signs of stress, early intervention is critical.
Bring in an interim CRO, assess your position under CCII, and define a path forward before options close.

👉 Explore how CE Interim supports international clients through complex restructuring and turnaround in Italy:
CE Interim – Restructuring Services