In a report to the Leaders League, Fabiana Solano, together with other specialists in the area, reviewed the preceding year for the #Restructuring and #Turnaround market and outlined the perspectives for 2022.
According to Fabiana, the relief measures promoted by the government during the pandemic and the creation of incentives to expand access to credit helped companies get through the period of turmoil, which contributed to a decrease in the number of new insolvency requests in court. However, “with the stabilization of the pandemic and the calamity situation, the tendency is for these support measures to be withdrawn, which will inevitably lead to an increase in the number of insolvencies in the country”.
Furthermore, this year “will also be difficult due to the presidential elections, and the period is likely to be marked by political and social tensions. With the new incentives that came with the reform of the insolvency law, the expectation is that many of the solutions for these insolvent companies will involve the granting of credit (via debt or equity) by investment funds and other private actors”.
Check out the full story, in Portuguese, at: https://lnkd.in/dPMfhMPT
