Restructuring and insolvency
Resolution standardizes criteria for the appointment and execution of the duties of judicial administrators/trustees, which are vital for the development of insolvency proceedings.
Our lawyers analyze the main shift points in the current mechanisms of the bankruptcy and reorganization legislation.
Our lawyers review the main points of change in the current bankruptcy and reorganization legislation's mechanisms as the potential enactment of the bill approaches.
Normative Act issued by the Rio de Janeiro Court of Appeals aims to create a special arrangement for dealing with conflicts related to business reorganization and bankruptcy due to the covid-19 pandemic.
Learn about the controversy over the two-year prior registration requirement for judicial reorganization of rural producers. The Brazilian Superior Court of Appeals has not yet resolved the divergent case law developed in state courts. Changes provided for in Bill No. 1,397/20 increase legal uncertainty on the subject.
The goal is to ensure the progress of insolvency proceedings as normal in order to preserve business activity and reduce the difficulties caused by measures to combat the pandemic.
The idea is to establish transitional measures, for one year or while the economic crisis resulting from the pandemic continues, to help business owners and all economic players to restructure their businesses and minimize the impacts of the crisis.
Import or export problems, decreased production, and falling consumption have forced companies undergoing judicial reorganization to navigate an even more delicate situation. The current quarantine also prevents meetings of creditors from approving new reorganization plans.
From January to June of this year, 829 applications for bankruptcy and 685 applications for judicial reorganization were filed for Brazilian companies, according to Serasa Experian. The high numbers reflect Brazil’s unstable economic situation and overwhelm the Judiciary with complex bankruptcy proceedings due to the huge number of participants and the diversity of legal issues involved.
The Judicial Reorganization and Bankruptcy Law (LRF) establishes that, once the request for judicial reorganization is accepted, all lawsuits and enforcements against the debtor will be suspended during the stay period, except for claims that are labor in nature, those that involve illiquid amounts and tax foreclosures.