What is the debt restructuring agreement: let’s be clear

Saving the company from the risk of bankruptcy and resolving the corporate or private crisis is possible thanks to the debt restructuring agreement. But what exactly is this debt negotiation tool? Let’s make it clearer.

Definition of a debt restructuring agreement: this is what the Bankruptcy Law provides

debt restructuring

The debt restructuring agreement is governed by the art. 182 bis of the Bankruptcy Law (Royal Decree March 16, 1942, No. 267). In particular, according to the rule ” the entrepreneur in a state of crisis can ask (…) the approval of a debt restructuring agreement stipulated with creditors representing at least sixty percent of the credits “. The debt restructuring agreement must also ensure full payment of the creditors within 120 days of approval, in the event that the credits have already expired on that date, also within one hundred and twenty days of expiry, in the event that they are not yet expired.

What is the debt restructuring agreement

After reading the definition of the law, let us try to understand in simple terms what the debt restructuring agreement is. This effective tool for the negotiated resolution of the business crisis avoids bankruptcy through

an agreement with creditors for out-of-court debt management. In practice, in order not to deal with a long, burdensome and inconvenient bankruptcy procedure even for credit institutions and banks, an agreed solution is proposed, that is, a liquidation that is not bankrupt with creditors.

Debt restructuring agreement: who to contact

Debt restructuring

To obtain a debt restructuring agreement, however, mediation and negotiation skills are needed to propose convincing corporate debt restructuring strategies to creditors. Not only that, but the request, according to the art. 182 bis of the Bankruptcy Law, must be accompanied by ” a report drawn up by a professional, designated by the debtor (…) on the truthfulness of the company data and on the feasibility of the agreement itself with particular reference to its suitability to ensure full payment of foreign creditors ”. Furthermore, it is important to perform an analysis of the banking contracts at the base of the debt, to check for any critical issues, to be able to exploit, through a financial report, in negotiations with the creditor banks. For this reason, to undertake a debt restructuring procedure it is essential to rely on professionals specialized in the recovery of financial losses able to help the debtor with an assisted negotiation in the resolution of disputes and conclude advantageous debt restructuring agreements.