Main changes in the bankruptcy and reorganization legislation after the Brazilian Congress rejected 12 of the 14 presidential vetoes to Law No. 14,112/20.
Spurred by recent legislation, these instruments have been increasingly used by companies in difficulty and their creditors, with very positive results.
Established by Law No. 14.112/20, new rule brought important changes in the disposal of assets to give greater agility to the process.
The trend is for everyone to negotiate concrete solutions for the recovery of their claims.
Resolution 394/21 establishes rules for cooperation and direct communication with foreign insolvency courts.
Resolution standardizes criteria for the appointment and execution of the duties of judicial administrators/trustees, which are vital for the development of insolvency proceedings.
A retrospect of the changes in Law No. 11,101/2005 that deal with the position of the Treasury in relation to tax credits and tax enforcement
New provisions offer greater predictability and security to those interested in assets of companies under judicial reorganization. Selling assets should become more straightforward, and the value of offers to recovering companies is expected to grow.
Interpretation of the law brings legal uncertainty to arbitration agreements and represents a step back from the settled case-law.
The market shows concern with the requirements for applying the substantive consolidation concept since the project finance structures may have similarities with the conditions specified in the new law.
The purpose of the changes is to expand the participation of judicial trustees, which will end up increasing their responsibilities and work.
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.
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.
Transitional measures that went for consideration in the Senate are expected to remain in effect until December of 2020.
The bill does not take into account that many companies, without a demonstrable economic justification, may stop any payments to creditors knowing that, within the period of extraordinary legal protection, they will be immune to the ordinary legal measures provided for the Brazilian legal system and contracts.
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.