Reforms to insolvency laws currently under discussion might contribute to a more attractive business environment in Brazil, but there is room for further improvements. This issue of LS Brazil Outlook analyzes the most important bills that are now in Congress.
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.
Image: Fabiana Domingues de Lima / CC BY-SA 3.0