Liquidity Decree: business continuity and new extensions due to the business crisis
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With Press Release n. 39 of 6 April 2020, the Council of Ministers announced the adoption of new provisions – included in a law decree not published yet in Official Journal – aimed at addressing the company crisis and ensuring the going concern assumption in the Covid-19 emergency phase.
The new measures adopted to ensure the going concern assumption will be implemented, on the one hand, when drawing up the financial statements for the current year, and, on the other hand, by suspending the causes of companies’s dissolution due to reduction or loss of share capital.
Other measures are aimed at suspending the opening of bankruptcy proceedings during the emergency period: until 30 June 2020, it will not allow bringing bankruptcy proceedings.
Still, in relation to bankruptcy law, further measures are foreseen for composition with creditors and scheme of the arrangement, while, the entry into force of the new New Code of economic crisis and insolvency will be postponed until 1st September 2021.
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