As far as the procedure is concerned, the declaration of insolvency of the company is mandatory for admission to the EA, in particular: (i) a petition for the declaration of the insolvency status is filed with the bankruptcy court (of the venue where the company is domiciled or has its registered office) by: (i) the company itself (i.e., the directors); (ii) the public prosecutor; (iii) one or more creditors; and (iv) the same bankruptcy court; it is understood that the above petition may be filed only in the event that the relevant company meets the requirements provided for by article 2 of the Prodi bis Decree.
(ii) within fifteen days of filing the above petition, the bankruptcy court may declare the status of insolvency (Declaration of Insolvency)
(iii) the bankruptcy court ascertaining the insolvency status also appoints the delegated judge and one or more judicial trustee(s) - in accordance with the Ministry instructions -(Judicial Trustee) (1). The bankruptcy court also schedules the term (maximum 120 days) for the creditors to file their motion indicating the amount of their respective claims
(iv) within thirty days of the Declaration of Insolvency, the Judicial Trustee shall file with the bankruptcy court a preliminary recovering report aimed at showing: (a) the ground of the insolvency; and (b) the existence of a possibility to recover the company, pursuant to article 27 of the Prodibis Decree (2)
(v) within the same thirty day term, the Judicial Trustee shall send a copy of the above recovering report to the Ministry; the latter is entitled - within ten days of receiving such report to file its comments with the bankruptcy court
(vi) within thirty days of the Judicial Trustee filing the above recovering report, the bankruptcy court may: (i) admit – by means of a decree - the company to the EA (provided that the conditions required by article 27 of the Prodibis Decree are met) and therefore declare the opening of the EA procedure (EA Commencement Date); or (ii) should the above conditions not be met, declare the company bankrupt
(vii) within five days of the EA Commencement Date, the Ministry appoints a number of Extraordinary Trustee(s) (from one to three) (Extraordinary Trustee) (3), simultaneously granting them a formal mandate to prepare the final draft of the Sale Plan or the Restructuring Plan (as the case may be)
(viii) the Extraordinary Trustee – in accordance with the instructions of the Ministry – shall prepare the Liquidation or the Restructuring Plan to be implemented for the recovery of the company (Recovery Plan)
(ix) within sixty days of the EA Commencement Date, the Extraordinary Trustee shall propose the Recovery Plan to Ministry, and
(x) within thirty days of making the above proposal, the Ministry approves (4) the Recovery Plan and grants the Extraordinary Trustee a formal mandate to implement it under its supervision.
Extraordinary administration procedures cannot last longer than:
• 1 year, in the case of a liquidation programme;
• 2 years, in the case of a restructuring programme.