("It is clear from these conditions that the connection between the company's bankruptcy and the requisition is unfounded, as the defendant administration correctly maintained, since RaytheonElsi's economic situation had for years already been seriously compromised, as its own management explicitly admitted.") The Court of Palermo did not however go so far as to state that ELSI was legally insolvent prior to the requisition. 98. However the Court of Appeal of Palermo, in its judgment, states that ELSI was insolvent before the requisition order was made. The salient passage on this point in the Court of Appeal's judgment states : 'Ber quanto riguarda i danni che sifanno consistere nell'avere la requisizione provocato ilfallimento della società, la conclusione negativa del tribunale è ampiamente e convincentementemotivata e . . . le considerazioni critiche dell'appellante non valgono a provocare un convincimento diverso;. . . La circostanza certa della insolvenza della società in tempo immediatamente anteriore al10 intewento del Sindaco . . . è sufficiente per escludere il collegamento causalefra il successive provvedimento di requisizione e ilfallimento della società,per il quale ultimo quel10 stato di insolvenza è causa determinante e sufficiente (Art. 5 legge fallim.). " ("as regards the damages consisting in the fact that the order triggered the company's bankruptcy, the negative conclusion arrived at by the court below is amply and convincingly motivated and the critical considerations of the appellant are not sufficient to lead to a different determination . . . The certain circumstance that the company was insolvent during the time immediately prior to the Mayor's intervention. . .is sufficient to rule out any causal link between the subsequent requisition order and the company's bankruptcy of which the company's state of insolvency was the decisive and sufficient cause (Art. 5, Bankruptcy Law).") The Court of Appeal also refers to the "prior insolvency" ('Brecedente insolvenza'~of the company, and to "the decisive effect of the state of insolvency" ("la efficacia determinante del10 stato di insolvenza'~. 99. Whether these findings by the municipal courts are to be regarded as determinations as a matter of Italian law that ELSI had been insolvent, within the meaning of the relevant legislative provisions, on 31 March 1968,or whether they are no more than findings that the financial position of ELSI on that date was so desperate that it was past saving, so that it was not the requisition which "caused an economic situation of such gravity that it immediately and directly triggered the bankruptcy of the company" makes no difference to the conclusion to be drawn. If ELSI was legally insolvent, then even if the liquidation plan could in fact have been implemented with CO-operationfrom the creditors, the stockholders no longer had rights of control and management to be protected by the FCN Treaty. If, as the Prefect of Palermo stated, and the courts of Palermo certainly thought, the factual situation at least was such that the requisition