No. 985 - When financial distress strikes: when and how firms initiate insolvency proceedings
This paper analyses the two historically most common insolvency procedures in Italy: judicial liquidation (which replaced fallimento under the 2022 Business Crisis and Insolvency Code) and the concordato preventivo (i.e. joint composition with creditors). Drawing on data from Cerved, INPS, Infocamere, and the Central Credit Register, the study provides new evidence on the functioning of both procedures.
Bankruptcy procedures are used by approximately 55 per cent of insolvent companies: one tenth of bankrupt firms enter into a composition agreement, and these are usually the larger firms. Approximately one third of companies in judicial liquidation were already inactive or insolvent two years prior to filing; one quarter were in economic and financial crisis five years prior. The probability that composition with creditors will succeed is greater the shorter the time is between the onset of the firm's insolvency or crisis and the start of proceedings.
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17 December 2025No. 985 - When financial distress strikes: when and how firms initiate insolvency proceedingsPDF 4 MB
(only in Italian)
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