Partner Fabiana Solano has written another article for the Insolvency in Focus column of Migalhas, dealing with DIP financing in extrajudicial recovery.
According to Fabiana, the current economic hangover we find ourselves in is the right time to test out-of-court recovery. With the new stimuli brought about by the reform implemented by Law No. 14,112/20, DIP financing is also available in extrajudicial recovery, putting an end to doubts that existed on the subject. According to the express provision of the law, once the resources have been disbursed to the debtor, even if the DIP is later annulled by the courts, the investor retains his guarantee, mitigating the legal risk of the operation. That is, when submitting an extrajudicial reorganization plan in court, the debtor who obtains judicial authorization for the DIP, to be guaranteed by the fiduciary alienation of non-current assets of the debtor or third parties, will have the protections and benefits provided by law.
Read the full article, in Portuguese, at: https://bit.ly/40Pbqdm
