Cherry, an Italian Fintech startup has published a report on the trend of bankruptcy proceedings in the second quarter of 2023 in relation to the top 20 courts in Italy.
The research found that during the second quarter of the year, when adding bankruptcies to judicial liquidations, nationwide the total number of new proceedings opened increased by 5 percent against 990 cases that were filed.
Looking at the individual courts examined, it appears how, compared to the second quarter of 2022, that of Busto Arsizio had an important 47 percent drop in the opening of new proceedings, followed by Padua (-23 percent), Genoa and Vicenza (-19 percent).
In absolute values, however, Rome and Milan were confirmed as the top courts for total proceedings opened in the second quarter (171 and 164, respectively), followed at a distance by Turin (63) and Brescia (52). At the tail end, however, are Busto Arsizio and Genoa (22) as well as Vicenza and Treviso (26), which record no new bankruptcy proceedings against only new judicial liquidations.
JUDICIAL SETTLEMENTS
– Milan court always first for contingent proceedings
Following the entry into force of the CCII regulations, the Cherry Sea Observatory highlights how 943 judicial liquidations were opened in the first six months of the year. Taking a look at the individual courts under study, that of Milan comes out first with 160 cases that have been surrendered, followed by Rome (147), Turin (59) and Brescia (50), while at the tail end we find Busto Arsizio and Genoa (22) in addition to Treviso and Vicenza (26). On the other hand, in relation to pending procedures today these stand at 1,798 (of which 339 in the court of Milan, 254 in that of Rome and 117 in Turin).
BANKRUPTS
– Rome court confirms first for open cases, Milan for those closed
Analyzing only those proceedings still subject to the Bankruptcy Law, now superseded by the CCII regulations, a total of 47 bankruptcy proceedings were opened in the second quarter of 2023 in the twenty courts surveyed – compared to 941 in the second quarter of 2022, for a conspicuous drop in the order of 95% – and 1,713 were closed, -5% compared to the same period last year.
From April to June 2023, the top court in terms of the number of proceedings opened (contemplating both bankruptcies and judicial liquidations) is Rome (171), an increase of 12% over the same quarter in 2022. It is followed by Milan (164) and Turin (63).
In relation to finalized proceedings, whose nationwide figure is down 5 percent compared to the second quarter of last year (from 1,805 to 1,713), the top court in Italy clearly remains Milan whose bankruptcy section completed 324 cases between April and June, down slightly from the 2022 numbers (337, -4 percent). It is followed by the courts of Rome (220 cases processed, but -14% compared to the same period in 2022, which had 256), Bari (109, +18%) and Naples (102, +52%), while that of Florence marks the largest percentage increase with +79%.
The sections that closed fewer proceedings, however, are those in Genoa (32, -14% over the same period in 2022), Venice (37, -34%), Cagliari (42, -33%) and Bologna (43, -35%). The largest percentage drop, however, is in Verona, which marks -40% (from 82 to 49).
– The provincial map of pending bankruptcies
The courts with the most voluminous stock as of June 30, 2023, are confirmed to be those of Rome (4,584 pending bankruptcies), Milan (2,954) and Bari (1,529), while at the opposite end are the bankruptcy sections of Modena (415), Busto Arsizio (497) and Genoa with (571). Nationwide, however, there are still 23,997 pending proceedings, still down 10 percent from the last quarter of 2022.
Blogger and Investment Management Advisor with focus on Distressed Assets & NPL. Massimo is Chief NPL & Fintech Editor at Credit Village Magazine.