Buying a troubled business at the right price: beware of claw-back action !

 We have been instructed by a quoted company to value a business that was purchased from a competitor, before the latter filed for bankruptcy before an Italian court. According to Italian insolvency law, an asset that has been sold by a debtor during twelve months prior to becoming insolvent may be subject to “claw-back” if the price was significantly inferior to its value at the time of sale. Valuation has been requested to verify if the price paid was aligned to the market value of the business in the context of a “claw-back” action promoted against our client by the bankruptcy-court appointed receiver.