Bill 4,458/20, approved by the Senate on November 25 of this year, amends laws - 11,101/05, 10,522/02, and 8,929/94, to update the legislation on judicial reorganizations, extrajudicial reorganizations, and bankruptcy of entrepreneurs and business companies. The bill stems from Bill 6,229/05, which was passed in the House of Representatives on August 26.
The signature of the President of Brazil is now expected to take place by December 24 of this year. If the current wording of the bill is maintained, the main points of change in the institutes of the current reorganization and bankruptcy legislation will be those indicated in the table below.
The main changes relate to:
- legal certainty and super priority in relation to the granting of loans during judicial reorganization;
- legal certainty and modification of some of the asset sale rules;
- cross-border bankruptcy and cooperation between domestic and foreign courts in such cases;
- fresh start;
- general rules for extrajudicial reorganization, with the possibility of including labor credits and reducing the quorum required for approval of the plan;
- installment payment of debts with the Federal Government and other tax matters; and
- judicial reorganization of rural producers.
In the event of doubt, Machado Meyer's debt Restructuring and Bankruptcy and Tax teams are at your disposal.
Partner on the Tax team responsible for this newsletter: Bruna Marrara.