On November 21, 2006, Felsberg e Associados coordinated the execution of an agreement between debtor and creditors to implement the first out-of-court restructuring in Brazil. The out-of-court restructuring (pre-packaging) is one of the most important innovations introduced by the new Brazilian Bankruptcy Law (Law no 11.101/05). Under this new instrument, a debtor may call all or part of its creditors (except tax and labor credits and a few other exceptions provided for in the law) to negotiate a restructuring plan, which may be ratified in court and become binding to non-adhering creditors, provided it is subscribed by holders of at least 60% of the affected credits. The petition for ratification was submitted to the competent court on the following day and the out-of-court restructuring is now in the process of being approved by the court. The team at Felsberg e Associados handling this project was lead by founding partner Thomas Felsberg, partner Joel Luiz Thomaz Bastos and associates Fabiana Bruno, Eduardo Zilberberg and Bruno Kurzweil.