The first article discusses why reorganization proceedings are not as effective (yet) as they were intended to be when the Business Insolvency Act was enacted in 2005. Alternatives to make debtor-in-possession financings more attractive to lenders, and pathways to overcome tax obstacles in insolvency regimes are the object of other articles. Finally, we analyze the importance of compensation of credits within insolvency proceedings of financial and similar institutions, in the context of the reform of the 46-years old insolvency law applicable to those institutions.
On this issue | October 2020
Pathway to overcome tax obstacles in insolvency proceedings
Obstacles imposed by the Brazilian Business Insolvency Act (Act 11,101/2005) have historically hindered tax-efficient recovery plans and created challenges for insolvent companies to pay their tax debts and for creditors to receive the amounts...
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Bringing recovery and investment together: regulating “DIP financing”
Modernization of the Brazilian insolvency legislation is imminent and is likely to boost “DIP Financing” in Brazil. Legislators have the chance to fulfill the purpose of widening possibilities for corporate recovery alongside with evolving local...
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Compensation of credits and key attributes
A draft bill that modifies the resolution regimes of financial institutions is currently under debate in the House of Representatives. The proposed bill complies with the standard framework recommended by the Financial Stability Board and aims...
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Creditors still wait for their turn in reorganization proceedings
The Business Insolvency Act has been in force for fifteen years, and a bill to reform it could be passed soon. Proposed changes have the potential to modernize the insolvency framework, but there is room for even further improvement
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