Judicial Recovery in Brazil is governed by Federal Statute #11,101/2005. National courts have not yet produced case law or final settlements, which rises legal uncertainty on limitations on creditors’ and debtors’ rights. The Judicial Recovery is strategic. Distressed debtors might plan strategies for judicial recovery or insolvency many years in advance and the marketplace might not be aware before the announcement following the start of court procedures. When creditors fail to comply with procedural terms, their representation may be reduced or voided at the Judicial Recovery. While some creditors are paid back values much lower than they were entitled to, others experience an increase in the amount of credit rights.
Licks Attorneys’ has experience in judicial recovery and insolvency; developing strategies to prevent unnecessary procedure procrastination and grace period for payments; monitoring equity sales; negotiations involving stock swaps and in representing creditors in the General Meeting and Committee of Creditors, including others. We are able to design strategies and handle all aspects of the judicial recovery procedures for creditors or debtors, producing daily reports to clients and anticipating the next steps.