Do you need funds to recover your business?
As a strategic response to the need to create a favorable environment for the revitalization of the national business fabric, the Government launched a new instrument to support the recovery of companies – the Revitalize Program.
The business recovery program
The aim is to optimize the legal, tax and financial context in which companies operate, with a view to the business revitalization of economically viable units.
The new model favors more agile legal mechanisms that facilitate business revitalization processes and a proactive and cooperative action of all public administration agents involved in this area, in order to avoid long processes of financial degradation of companies linked to the persistence of business models. business misfits, which jeopardize the intended regeneration of companies.
Main Goals
The Revitalize Program has as priority goals:
- Provide companies with a legal framework conducive to the revitalization of viable companies, namely, through the revision of the Insolvency and Company Recovery Code, which will enshrine the new “Special Process of Revitalization” (PER);
- To promote speed and efficiency in the articulation of companies with the State, with a view to designing adequate solutions for business revitalization, in particular with regard to Social Security and Tax Administration, with a view to “acting the State with one voice ”;
In this context, the SIREVE (System for the Reorganization of Companies by Extrajudicial Via) will be launched, which integrates the revision of the previous PEC and favors more agile and efficient solutions in the negotiation process and in the mediation of creditors and debtors.
- Strengthen the financial instruments available for the capitalization of companies, with a particular focus on venture capital and regional revitalization funds;
- Streamline the interaction between companies and the financial instruments of the State and those of the financial system, with a view to speeding up decisions and ensuring the success of revitalization operations;
- Foster transaction processes of companies or business assets, promoting the regeneration of the business fabric, namely, through succession or business concentration operations.
Program Instrumentation
The Revitalize Program is applied in companies using 3 essential vectors, described below:
- Special Revitalization Process
- System of Recovery Companies Via Extrajudicial
- Revitalization Funds
Special Revitalization Process (PER)
One of the main measures of the Revitalize Program is the revision of the Insolvency and Corporate Recovery Code (CIRE), refocusing it on the logic of business revitalization, as opposed to the previous philosophy, which favored the liquidation and dismantling of companies.
The Government amended the Company Insolvency and Recovery Code and instituted the new Special Revitalization Process (PER), which offers companies in difficult economic situations and imminent insolvency an alternative instrument to insolvency.
Inspired by the well-known North American ‘chapter 11’, PER asserts itself as a business restructuring solution, where companies see their productive capacity and jobs protected, with activity maintenance and suspension of credit collections during the negotiation process and the viability of the recovery plan by creditors.
Company Recovery System by Extrajudicial Via (SIREVE)
By reforming the extrajudicial procedure, the new system will ensure the mobilization and concerted involvement of all critical creditors in the negotiation process, making it faster and more effective, namely through the dematerialization of processes and the creation of an electronic platform.
The objective is to guarantee an agile articulation between the different entities of the public administration, enabling the analysis “case by case” and the concertation of positions and practices between the different actors, namely, the Tax Administration, Social Security and the Economy and of Employment.
Revitalization and Business Expansion Funds
The Revitalize Program also provides for the provision of financing solutions to support business revitalization operations.
In addition to the restructuring of the venture capital public sector that has already been carried out, the creation of Funds for Revitalization and Business Expansion (“turnaround funds”), on a national and regional level, is planned to support the revitalization of SMEs. The aim is to set up 3 regionally based venture capital funds with a global value of 220 million euros.
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