Concordato Preventivo and State Aid

Abstract

This article examines the interactions between the rules governing State aid in EU law and the Italian concordato preventivo (pre-bankruptcy arrangement with creditors), which may take place both when Member States are granting aid and when aid considered illegal by the European Commission is being recovered. This contribution therefore analyses – also in light of Italy’s recent Financial Distress and Insolvency Code (Codice della crisi d’impresa e dell’insolvenza) – the compatibility of a concordato preventivo, whether as part of a company’s winding-up or continuity, with the obligation incumbent on the Member States to restore the situation to that preceding the granting of aid and remove the competitive advantage gained by the beneficiary.