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23 September 2019
Under Article 2467 of the Civil Code, the reimbursement of a loan granted by partners to a limited liability company is postponed over the reimbursement of a loan granted by other company creditors.
Further, if a company issues a loan one year prior to a company's bankruptcy, the loan must be repaid to the company.
This rule also applies if there is an excessive imbalance between a company's debt and net assets or if a company's financial situation requires an increase of company capital.
The abovementioned rule also applies to companies that belong to a group (Article 2497 of the Civil Code) and loans granted by shareholders to companies owned by a limited number of shareholders whose shares are not listed on the stock exchange (Supreme Court of Cassation Decision 16291/2018).
In a recent decision (12994/2019), the Supreme Court of Cassation held that:
This decision is important as it extends the postponement rule's scope beyond a company's bankruptcy (Supreme Court of Cassation Decision 25163/2017) to a company's temporary financial difficulty.
For further information on this topic please contact Eugenio Vaccari at Grieco e Associati by telephone (+39 06 420 3881) or email (firstname.lastname@example.org). The Grieco e Associati website can be accessed at www.griecoassociati.com.
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