News
9/03/2020

Government studies new Judicial Recovery model for rural producers

The Government is currently studying the implementation of a new model of Judicial Recovery for rural producers. In an interview with Vert Capital, partner Fabiana Solano says that the “proposal ends up making the recovery of the producer unfeasible, because the possibility of Judicial Recovery will be priced at the time of contracting.”

She goes on to say that the proposals in analysis may include the possibility of restructuring of liabilities related to agricultural production only, in addition to excluding any possibility of restructuring the debt of rural producers when they appear only as co-obligors and guarantors. In spite of this, our partner affirms: “I like two points in the debated model. The first is the possibility of parceling out the delivery of production linked to the CPRs in several harvests, as is already the case with collateral. The second point is the conciliation alternative (a sort of arbitration which allows for an extrajudicial resolution between both parties).”

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