Case History: Italian Real Estate

USA- Italian Real Estate and Bankruptcy Procedure

Assessment

Scope: Real estate investment through a bankruptcy procedure in Italy   

Business Profile: US citizen with financial resources deriving from his activity in the financial field

Objective: Have a prestigious property located in an exclusive location in Italy and a company (going through a bankruptcy procedure) that can be taken over to carry out the entrepreneurial activity of temporarily renting holiday homes

Activities

Analitical activities

    • Analysis with the client’s lawyers of the debt situation of the company that owns and manages the property and tourist activity

    • Analysis of the different alternatives for the purchase of the bankrupt company and its properties: purchase of company shares, pruchase of real estate properties through a new company, etc. 

    • Assessment of the risks associated with the purchase of shares or assets of the over-indebted company and with real estate enforcement procedures in progress

Operational activities

    • Establishment of a newco in the form of a limited liability company (S.r.l.) to be used for the purchase of the company and property in Itay

    • Presentation by the over-indebted company of application to the Court of Lucca pursuant to art. 182-bis comma 6 R.D. March 16, 1942, no. 267

    • Definition of debt restructuring agreements with the main creditors of the over-indebted company

    • Definition pursuant to art. 182-ter of the tax payables of the over-indebted company with the competent office of Agenzia delle Entrate

    • Presentation to the Court of Lucca of a restructuring agreement pursuant to art 182-bis R.D. March 16, 1942, no. 267, entered into with creditors representing at least 60% of the company’s overall debts

    • Approval of the agreement by the Court of Lucca

    • Execution of the agreement through the purchase of the company and properties in Italy, as well as payment of the creditors of the over-indebted company within the established terms

Results

  • Purchase of a company and its property in Italy in order to start an entrepreneurial activity in the real estate and rentals sector.

  • Exclusion from revocatory actions pursuant to art. 67, comma 3, letter e) R.D. March 16, 1942, no. 267 of the operations that were carried out