Suspension of installments of “Rottamazione quarter” in negotiated settlement

The Court of Vasto has ordered the suspension of the payment of the installment related to the “rottamazione quater” tax settlement scheme for a period of 60 days. The deadline for this payment had been set for Monday, December 9th. This measure is part of a negotiated crisis resolution procedure and relates to a decree issued yesterday that accepts the requests made by the company’s advisors.

The company, currently undergoing a negotiated crisis settlement to address its financial difficulties, is engaged in confidential negotiations for acquisition by a nationally significant group operating in the same sector. In the meantime, despite having received funds from ongoing contracts, the company chose to allocate these sums toward paying the salaries of its employees, a decision which has been endorsed by the judge. This allows the company to continue its operations, preventing harm to the workers and ensuring business continuity and the success of the recovery plan. The advisors have stressed that failing to pay salaries would have had negative repercussions, not only for the workforce but also for the recovery process itself.

The decision by the Court of Vasto highlights that, within the context of a negotiated crisis resolution, it is possible to suspend the payment of amounts due under the so-called "rottamazione dei ruoli" tax amnesty, without losing the benefits of debt reduction, provided that such suspension is functional to the company’s recovery.

The precautionary measure was adopted pursuant to paragraph 1 of Article 19 of the Bankruptcy Code, which allows an entrepreneur in difficulty to request the adoption of precautionary measures by the court in order to continue negotiations with creditors and third parties with a view to recovery. In this case, the company requested, through a ruling issued, the suspension of the payment of the "rottamazione quater" installment to avoid losing the tax benefit. The court was informed that, thanks to the facilitated debt settlement, the company has significantly reduced its debt, which is crucial for the continuation of its operations and the ongoing sale negotiations. Although the company has already paid the initial installments, it does not have sufficient resources to cover the upcoming installment and pay employees' wages.

It is also important to note that complying with the tax settlement would facilitate an agreement with the Revenue Agency on outstanding tax liabilities, as provided by Article 23 of the Bankruptcy Code.

The decision to suspend payment was also justified by the fact that the company could not request a suspension of salary payments, as employees’ rights are excluded from protective measures. Furthermore, granting the request for a moratorium would not cause irreparable harm to the state’s finances, as the outstanding sum will be paid later, provided the company’s activity continues and employees’ salaries are guaranteed.

In summary, the Court has adopted a precautionary measure based on a careful balancing of the interests involved, thereby safeguarding the interests of all creditors, including the state.