The operating environment in Italy, while improving, remains challenging in 2026. Long-term exposure to systemic disruptions and geopolitical shocks, including supply chain instability and volatility in energy and commodity prices, continues to drive uncertainty. In this context, Italy is set to be one of Europe’s most dynamic markets for restructuring activity and distressed M&A investment. With creditors demanding faster and more decisive action to mitigate risks linked to global tensions and operational disruption, a growing share of distressed situations is emerging from private equity portfolios, prompting more sophisticated and proactive restructuring strategies.

Italy's restructuring and distressed market in 2026 is experiencing high activity due to mounting operational pressures, high inflation and energy costs, following a year of high insolvencies in 2025. 

Looking forward, a high volume of restructuring procedures and distressed M&A transactions is expected in the coming years, particularly in retail and manufacturing. Pandemic-era credit support such as SACE’s “Garanzia Italia” state-guaranteed loans that provided EUR42 billon of funding by June 30, 2022, has left a tail of maturing debt that companies will need to refinance over the next couple of years. Moreover, in many instances, lack of strategic view and need to cope with immediate cash needs have driven companies to unbalanced short-vs-long structure to fragmented lenders’ consortia. Our panel of experts will explore why Italy is emerging as one of Europe’s most active markets for restructuring and distressed investment.

• What is the current state of the restructuring market and what is projected for the next 12 months? The impact of Garanzia Italia maturing credit support on pipelines and liquidity challenges and the approach of the banks (large vs local, traditional vs challenger) to new second rounds of previously restructured companies
• How is the shift from NPEs to more proactive UTP management and NPLs changing the dynamics of credit portfolios and restructuring strategies? 
• To what extent is cross-border activity and international investor interest increasing, and how is this influencing acquisitions and growth capital strategies?
• How can companies deploy innovative tools, including stronger governance, enhanced risk management and greater transparency to stabilise performance, preserve value in distressed situations and prevent fraud, cyber risk incidents and other capital events?

The Negotiated Settlement of Crisis process has become the leading early intervention tool in Italy, supported by increased digitalisation, more efficient court processes and growing familiarity among stakeholders. Filings and success rates continue to rise. Our panel of experts will address how, alongside broader alignment with European restructuring frameworks, recent amendments are strengthening legal certainty and positioning pre-insolvency processes as the default route for many restructurings, enabling faster resolutions and attracting increased international participation.

• Is negotiated settlement still the most effective route for corporate recovery, and how should companies balance informal and formal restructuring tools to maximise value?
• How will the ongoing harmonisation of European restructuring and insolvency frameworks influence the Italian market and investor confidence?
• Proactive restructuring: Is the focus shifting from in court to out of court restructuring solutions, and how is this affecting timelines and outcomes in Italy?
• Is the negotiated settlement – with its most recent amendments – favouring the interest for distressed M&A by international investors?

Italy is seeing a significant rise in private credit driven restructurings in 2026, largely due to the refinancing needs linked to maturing SACE backed debt. As traditional banks continue to limit exposure, private credit providers and alternative capital are playing an increasingly prominent role. Recent transactions are demonstrating the growing use of bespoke financing solutions and innovative liability management exercises. At the same time, continued legal modernisation and the use of structured processes such as CNC are supporting higher lender confidence and more predictable outcomes.

• What is the outlook for private credit and distressed investing in 2026 and beyond, and how can special situations investors continue to capitalise on market volatility?
• Is capital stress fundamentally reshaping lending markets and corporate governance approaches in Italy?
• Will alternative financing remain a niche market or should we expect increasing competition due to a larger number of players and a higher volume of transactions?
• Will securitisation structures be increasingly used for distressed and semi distressed corporate exposures, and how might international models influence their development?
• To what extent is private equity driving distressed M&A opportunities, particularly within sectors such as manufacturing and fashion?

Italy’s restructuring and distressed market in 2026 is experiencing high activity, with 18% of companies in distress, the highest in Europe, driven by weak consumer demand, cost inflation and high energy price. At the same time, early-stage restructuring is driven by lenders’ proactive monitoring, mandatory early-warning systems, and the transposition of new EU harmonisation rules.  Acute stress is hitting the fashion, manufacturing, automotive, retail and construction sectors, particularly companies with weaker capital structures with limited access to financing. Companies in these sectors will increasingly require new capital injections and deleveraging solutions to stabilise their financial positions and navigate new regulatory and market pressures. This panel will explore how companies and investors are responding to sector-specific challenges and evolving restructuring needs.

• Which sectors are emerging as more resilient in 2026 and where should lenders exercise the most caution?
• How are businesses managing the ongoing pressure from energy price volatility and input cost inflation, and what impact is this having on private credit activity? 
• How should investors approach financing digital transformation and AI infrastructure while managing valuation risk and concerns around overheating or asset bubbles?
• Observing opportunities and forecasting trends in the Italian market for the next 12 months