Despite the absence of a concept of abuse of voting rights in the Business Insolvency Act, courts are using the notion of abusiveness to set aside votes from creditors against a bad restructuring plan. That sends the wrong signal to the market...

The holders of bonds issued abroad are typically a particularly important group when the borrower files for in-court reorganization. Bondholders gain very little by staying dormant and can get good results when acting as individual claimholders.

The Clean Company Act set clear limits to the liability of investors who merge with or buy assets from companies probed in corruption cases. However, other statutes also give several authorities power to impose sanctions on entities involved...

Courts in Brazil have been circumventing express legal provisions from the Business Insolvency Act by resorting to legal principles and interpretation. The bias towards the debtor is questionable from a legal and a market perspective and creditors...

Odebrecht’s recent filing is one of the largest-ever court-supervised reorganizations in Brazil. Even creditors to the affiliates that did not make this filing should monitor the Odebrecht case since the impact on them is still unclear.