Restructuring, Rescue and Bankruptcy

Professional Advice during Challenging Business Conditions

Companies facing financial difficulties require sound legal representation to stabilize their economic situation and successfully re-enter the market.

Debtors often meet their obligations to creditors by selling off productive units. Under Brazilian law, a purchaser may not subrogate a debtor's obligations (including tax-related duties) or assume existing obligations related to the unit. This process allows for financially-troubled companies to continue their operations, while offering an excellent opportunity for potential buyers to benefit from extensive investment-related legal protections.

Another important mechanism under Brazilian bankruptcy law is the 180 day suspension of the statute of limitations and of all pending cases (including enforcement actions) against the debtor. That time period grants the debtor additional time to organize, plan and start anew, while meeting its obligations towards its customers, suppliers and employees.

Given the complexity of Brazil's bankruptcy laws, legal representation is highly recommended for both the debtor and the potential purchaser of the debtor's assets.

1.239 companies filed for bankruptcy protection in Brazil in 2021
24,4%decrease in the percentage of requests for judicial recovery in 2021 compared to 2020

Almeida Advogados' restructuring, recovery and bankruptcy team creates customized solutions for Brazilian and foreign clients alike facing insolvency, as well as for those parties interested in investing in companies with financial difficulties, such as:

  • Evaluating the credit situation and respective guarantees for companies facing insolvency;

  • Advising investors interested in acquiring assets of companies with financial difficulties, after analyzing the debt profile and related transactional risks;

  • Structuring and implementing recovery plans;

  • Managing and counseling on extrajudicial and judicial recovery processes, including representation at committees and creditors' meetings;

  • Supporting negotiations with debtors and creditors;

  • Assisting with debt restructuring processes;

  • Providing corporate advice on reorganizing companies with financial difficulties.

Our Practice Areas

Corporate, M&A and Contracts
Infrastructure and Project Finance
Labor, Employment and Social Security