The time limit for creditors to express their vote to the rescue plan proposed by RBD expired on 20th of June 2017.
From the information circulated recently on line, the rescue plan has not been approved by creditors.
According to the Bankruptcy law:
- the composition with creditor proposal (“proposta di concordato”) has to be approved by the creditors’ majority vote, and in the event of their division into classes, the majority of them;
- any abstention from voting, according to the new article 178 of the Bankruptcy Law, is equivalent to a negative vote.
Two financial institutions (Monte Paschi Siena and Intesa Sanpaolo) , both being substantially exposed creditors of the company, did not express their vote within the 20th of June. This meant that the quorum requested by Italian bankruptcy law for the relevant approval was not achieved.
If the information above will be confirmed, the Court should declare the composition with creditor proposal (“proposta di concordato”) “rejected” following a closed hearing with the debtor.
Following the Court’s decision, there are three likely consequences :
- a new composition with creditors proposal (“proposta di concordato”) (which, in the present matter, will record the third attempt of RBD to come to a composition with creditors); or
- a request for the Extraordinary Administration procedure; or
The Company is expcetd to do its best to enter as soon as possible into one of the “protective umbrella proceedings” in order to prevent creditors from starting or continuing enforcement actions against its assets.
Meanwhile just today, 26th July 2017 the new 848/2015 EU Regulation on insolvency proceedings come into force, replacing the previous 2000 Regulation. This will introduce further issues to be considered when dealing with RBD saga.
For any further information please contact us.
Our firm records a considerable experience in this field, having assisted and so far assisting several domestic and international claimants against ILVA S.p.A. and further entities belonging to ILVA GROUP in Extraordinary Administration as well as against Lucchini S.p.A., the other leading steel maker in the Italian market.
In the transport sector our firm assists several domestic and international claimants in the bankruptcy procedures involving a lot of Italian entities.
Moreover the firm provides its services on behalf of Tirrenia di Navigazione and SIREMAR – Sicilia Regionale Marittima S.p.A., the two former state-controlled sea-carriers, in the several proceedings brought before Tribunal of Rome – Bankruptcy branch.