This Decree, which will have to be converted into law within 60 days, modifies the existing rules applicable to the management of companies subject to the so-called "extraordinary administration" procedure. The "extraordinary administration" procedure is a form of administration for insolvent undertakings under Italian law. The scope of Decree No 347 is to simplify access to the "extraordinary administration" procedure in favour of companies employing more than 1000 people and whose debt exceeds €1 billion.
The Decree sets forth an accelerated procedure for adoption of a restructuring plan. It also gives additional powers to the so-called "extraordinary administrator". These powers concern the elaboration of a restructuring plan in order to ensure the operation of the company and to safeguard employment. In all other respects, the new Decree No 347 refers to existing Italian insolvency laws.
Commissoner MONTI informed the College that the procedural modifications of existing insolvency laws -- as introduced by Decree No 347 (provided the decree is converted into law without modifications) do not raise problems as regards Community state aid rules.
Concerning the provisions of the Decree which refer to the current legislation (law 270/99), Commissioner MONTI reminded to the Italian authorities that they will have to notify every instance of applying Article 55 of this law, as already foreseen. This article allows the State to provide guarantees to companies in "extraordinary administration".
All other State measures that are granted as part of the "extraordinary administration" proceedings and contained in an industrial restructuring plan for individual undertakings will remain subject to the rule on prior notification. Such measures will be closely scrutinised by the European Commission.
