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Global Restructuring & Insolvency Guide Italy Overview and Introduction Insolvency proceedings typically aim to liquidate an insolvent entrepreneur’s assets with full discharge vis-à-vis all creditors. Traditional Italian insolvency proceedings are extremely formal and require the involvement of courts and/or other public authorities, regardless of the size of the bankruptcy estate; consequently, they are usually lengthy and costly, the average duration being seven years. In recent years alternative in-court and out-of-court arrangements have been introduced, which aim to facilitate the discharge of insolvent companies through compositions with creditors. Currently, under Italian law, the insolvency procedures (“procedure concorsuali”) for rehabilitation or liquidation of a company include: • Bankruptcy (“fallimento”); • Pre-bankruptcy composition (“concordato preventivo”); • In-bankruptcy composition (“concordato fallimentare”); • Debt restructuring arrangements and certified turnarou...