Cherry Sea, the Observatory created by the fintech startup Cherry Ltd, analyzed the last activity quarterly of the first twenty "bankruptcy sections" by volume of activity in Italy which includes the cities of Bari, Bergamo, Bologna, Brescia, Busto Arsizio, Cagliari, Catania, Florence, Genoa, Milan, Modena, Monza, Naples, Padua, Rome, Turin, Treviso, Venice, Verona and Vicenza.
The data shows how, despite the fact that the new one came into force in July 2022 Crisis Code, to date the proceedings of the Bankruptcy Sections of the courts have not yet dropped as intended by the Legislator.
Procedures are increasing compared to 2022
It emerges from the study that during the first three months of the year the total of open procedures, adding bankruptcies and judicial liquidations, is increased 4% with 1.072 practices occurred: 218 of bankruptcy, (- 78% compared to 2022) and 854 of judicial liquidations.
The court which had the greater increase appears to be that of Padua (168%) followed by Treviso (+78%), Brescia (+46%) and Busto Arsizio (+44%). The courts, on the other hand, which show a reduction of loads are Verona (-53%), Florence (-45%) and Genoa (-42%).
Rome it is confirmed as the first court for total proceedings opened since the beginning of the year (215), followed by Milan (188), Catania and Turin (respectively 66). In the queue, however, Genoa (18), Cagliari (20) and Verona (22).
What the new Code of crisis and insolvency says
In the new Code of crisis and insolvency (CCII), which entered into force on 15 July 2022 and which replaces the previous Bankruptcy Law, we no longer speak of "Bankruptcy" but of "Judicial Liquidation". The reform was conceived and developed by the Legislator with a view to facilitate a timely diagnosis of the business crisis for the protection of business continuity. If the objective of the CCII is therefore to avoid as much as possible the possible liquidation of the assets of the insolvent entrepreneur, the numbers for the first quarter of 2023 however show that this result has not yet been achieved. To date, place the bankruptcy proceedings coexist with the new judicial liquidations. This is because until the entry into force of the new code (before 15 July in practice) the appeals filed for the declaration of bankruptcy are defined according to the provisions of the Bankruptcy Law, while those presented subsequently are now governed by the new regulations in force.
Judicial liquidation: Milan in first place
The courts where the more new judicial liquidations (following the entry into force of the legislation) are Milan, first with 179 new practices that have arisen, followed by Rome (107), Catania (59) and Turin (58). garlic last places there are the courts of Genoa and Cagliari (14), followed by Venice (18) and Verona (19).
Bankruptcies: Rome first for open practices, Milan for closed ones
As regards the proceedings, placed under the Bankruptcy law, have been opened altogether 218 bankruptcy proceedings and 1.603 were closed (in line with the same period of the previous year). The stock of files amounts to 25.324 (down by 5%). Compared to the courts of all of Italy there is a decrease of 79%. In the first quarter of 2023, the first court by number of open proceedings is confirmed to be that of Rome with 108 (although down by 50% compared to 2022). Milan, on the other hand, is confirmed as the first court whose bankruptcy section has completed 322 cases since the beginning of the year.
Courts that submit i more voluminous processes as at 31 March 2023 they are confirmed to be those of Rome (4.778 pending bankruptcies), Milan (3.177) and Bari (1.604). The bankruptcy sections of Modena (469), Busto Arsizio (523) and Genoa (594) close the ranking. TO national level there are still 57.420 pending procedures (-5,2%).
“Monitoring, collecting and analyzing data relating to new judicial liquidations and queues of bankruptcy proceedings in Italy has allowed us to capture interesting phenomena such as the fact that, despite the entry into force of the new Code of crisis and insolvency, the total number of open files in the first quarter of the year either increased 4% compared to the same period of 2022, therefore in contrast with the expectations of the Legislator. L'intent of the CCII regulation to avoid the bankruptcy of the companies therefore does not seem to have occurred yet, it will probably still take months to adjust in the transition from the old to the new judicial procedures. In the meantime, the insights emerging from the Cherry Sea Observatory continue to be an excellent tool to support clients in strategic assessments in the context of debt collection” said James Fava, Lead AI Engineer of Cherry Srl.
