Monday, 22 February 2016 (1 hour ago) by Thomas Muskett-Ford
Brazil’s Felsberg Advogados has promoted a restructuring lawyer to the partnership, as it targets demand for alternatives to lengthy court-supervised reorganisation plans.
Pedro Bianchi, 33, was promoted on 1 February, increasing the firm’s partner count to 18. He focuses his practice on debt re-profiling, distressed investments, capital reorganisation and extrajudicial and judicial restructuring.
Felsberg’s latest promotion comes as the Brazilian economy slides into deeper recession. The firm believes creditors and debtors want to cut the high financial costs associated with lengthy court-supervised restructuring. They think pre-packaged bankruptcies and extra-judicial settlements are cheaper, quicker alternatives that will soon gain greater market traction.
Bianchi joined Felsberg in 2014 after a stint at BMA – Barbosa, Müssnich, Aragão. He also worked as an associate at Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados.
Bianchi will work alongside Thomas Felsberg, the firm’s founder, and restructuring partner Paulo Fernando Campana Filho, who says their new partner will help meet rising demand. “The economy as a whole is on a downward spiral,” notes Filho, adding that oil and gas, construction and retail sectors are the hardest hit.
Felsberg, which is one of Brazil’s top restructuring firm, is not the only firm strengthening Bianchi’s practice area. TozziniFreire Advogados promoted a lawyer last month. Speakers at Latin Lawyer’s 6th Annual M&A Conference attributed the situation to the sprawling anti-corruption investigation into Petrobras. The state-owned energy company has suspended or cancelled many projects, paralysing large swathes of the energy and construction sectors.
Last Thursday, the Central Bank revealed the economy contracted by 4.1 per cent in 2015. Consumer spending is also down, which has hit the retail sector.
Brazil’s economic fortunes are unlikely to improve in 2016. Top economists polled by the Central Bank at the end of 2015 predicted the economy will contract a further 2.67 per cent this year.