Analysis of Judgment No. 22772 of 2024: Priority Claims and Insolvency Proceedings

Judgment No. 22772 of August 13, 2024, issued by the Court of Cassation, offers an important interpretation regarding the priority claim (prededuzione) provided for by Article 182-quinquies of the Bankruptcy Law. The subject of analysis is the connection of this form of priority claim to specific insolvency proceedings and its limited circulation among the parties involved. This decision has significant implications for legal practitioners and businesses involved in insolvency proceedings.

Priority Claims under Article 182-quinquies

Priority claims, as established by Article 182-quinquies of the Bankruptcy Law, are a form of protection for creditors, allowing them to be paid with priority over other creditors in certain crisis situations. However, the Court has clarified that:

"Priority claim under Art. 182-quinquies of the Bankruptcy Law - Connection to a specific insolvency proceeding - Circulation dependent on the transfer of the claim - Persistence in modifications of the passive side - Exclusion - Rationale. Regarding the sequence of insolvency proceedings, the priority claim provided for by Art. 182-quinquies of the Bankruptcy Law does not extend beyond the entity to which it was recognized in the same proceeding, even if the composition plan (piano concordatario) possibly contemplates or reflects a conventional or legal correlation with another entrepreneur. Therefore, it does not transfer or circulate based on the transfer of the claim to which it is connected, nor does it endure or persist in case of modifications to the passive side of the obligation."

This maxim highlights that the priority claim is strictly linked to the entity to which it was recognized. This means that, even if a composition plan provides for a link with another entrepreneur, the priority claim cannot extend to the latter. This limitation can generate significant consequences in the management of insolvency proceedings.

Practical Implications of the Judgment

The practical implications of this judgment are manifold:

• Clarity for Creditors: Creditors must be aware that their priority claim status does not automatically transfer to third parties, even in the presence of conventional links.
• Risks for Companies: Companies in difficulty must carefully consider the wording of composition plans to avoid the priority claim becoming ineffective in case of subjective changes in liabilities.
• Crisis Management Strategies: The decision calls for a review of crisis management strategies, emphasizing the need to protect primary creditors.

Conclusions

In conclusion, Judgment No. 22772 of 2024 represents an important milestone in understanding priority claims within insolvency proceedings. The Court of Cassation has reiterated that priority claims cannot circulate outside the entity to which they were recognized, thus excluding their transferability to third parties. This principle not only clarifies the internal dynamics of bankruptcy proceedings but also offers food for thought for professionals in the sector when planning debt recovery and corporate crisis management strategies.