New safe harbour provisions on Italian leveraged buy-outs

Recent legislation in Italy has created a general safe harbour for leveraged buy-outs. Mergers between a leveraged vehicle and the acquired target, where the target acts as a general guarantee, or the source of reimbursement of, the debt incurred by the vehicle, will now be permitted subject to certain requirements, according to Giancarlo Capolino Perlingieri and Dante Leone of Debevoise & Plimpton.