Italian court intervenes in PRINK-AQA insolvency crisis
August 29, 2024
The Bologna court appoints commissioners and sets stringent conditions as PRINK and AQA, both facing severe financial turmoil, seek to resolve their financial distress.
The Ordinary Court of Bologna, Italy, has taken action in the insolvency proceedings of PRINK SPA and AQA SRL, two companies within the AQA-Ninestar Group, facing severe financial distress. In a decree issued on August 20, the court appointed Judicial Commissioners to oversee the restructuring process, granting them extensive powers to access financial records and databases to ensure transparency.
PRINK SPA, a key player in the print supplies and IT consumer products market, was acquired by AQA-Ninestar in April 2022. The Recycler reported that this acquisition allowed Ninestar to gain a majority stake in PRINK, integrating the Italian company into its global network focused on non-OEM print solutions. Despite its modest size, PRINK SPA’s strategic importance within the group has caused its financial troubles to be particularly concerning.
The court’s intervention is crucial as PRINK SPA faces significant debt exposure, necessitating a comprehensive review of its financial health. The decree mandates that both companies submit detailed financial reports by October 15, 2024, distinguishing between pre-existing and new debts and providing regular updates on their financial management.
Additionally, the companies must deposit €40,000 each to cover procedural costs. Failure to comply could revoke the court’s protective measures, further complicating the situation for the AQA-Ninestar Group.
The case highlights the increasing scrutiny faced by companies in crisis under Italy’s updated insolvency regulations, enacted under the Codice della Crisi d’Impresa e dell’Insolvenza (CCI) in 2022, focus on early crisis detection, restructuring over liquidation, and streamlined procedures. They empower Judicial Commissioners, enforce strict reporting duties on debtors, and encourage digitalisation to ensure transparency and efficiency in handling business crises. These reforms aim to facilitate earlier intervention and preserve economic stability by prioritising business recovery over dissolution.
As the deadline looms, it will be interesting to see if PRINK and AQA can navigate this legal and financial quagmire.
Categories : World Focus
