Why is the extension of the negotiation period before judicial recovery so important? In the article published on Migalhas, our Judicial Recovery team: Thiago Dias Costa, Marina Serachiani Clemente, and Nathalia Damacena Nunes — analyze how the possibility of extending the 60-day period provided for in Art. 20-B, IV, §1º of the LRF can be decisive for the success of negotiations with creditors.
Intended as an alternative to judicial recovery, mediation introduced by the reform of the Bankruptcy and Reorganization Law faces obstacles that may compromise its effectiveness. The 60-day deadline for concluding negotiations has proven insufficient in light of creditor resistance or factors beyond the debtor’s control. The article advocates for a functional interpretation of the norm, aligned with the reform’s objective, and examines decisions that already allow, when there is a concrete prospect of an agreement, the extension of the deadline. A must-read!
Check out the full article on Migalhas here (available only in portuguese).
