Even if modest, changes in bankruptcy law are acclaimed and experts hope for effectiveness

Our partners Thomas Felsberg, Clara Moreira Azzoni and Fabiana Solano participated in an event promoted by the Brazilian Association of Infrastructure and Base Industries (ABDIB) on the changes in the Bankruptcy Law.

Our Founding Partner Thomas Felsberg commented on the effects of the pandemic on corporate insolvency and stated that “the 2020 legislation increased the power of creditors to try and find a solution for companies in crisis” and that “in 2005, the law then approved was considered modern, but without effective application”.

Fabiana Solano participated in the panel on how the changes allowed the speeding up of the judicial reorganization process, commenting that it was possible to “make the liquidation of the company more efficient, looking at the community and the interest of creditors and trying to stop an unbridled and destructive race for assets of the debtor”.

Clara, who participated in the panel “Case Studies: Viracopos, RDT, SPMar, Celpa and Oi,” reinforced the possibility that a larger set of companies need such regulation to keep their operations active.

The full content is available only in Portuguese at: