The Corona Crisis leads worldwide to critical situations for companies.
In light of this, Digitorney has asked lawyers from various countries specialized in restructuring law for recommendations on what needs to be done and which solutions are at hand to weather the Corona Crisis.
This part of our series focuses in Brazil:
1) When does a company need to file for insolvency in Brazil?
Pursuant to the Brazilian Law, a company should file for judicial reorganization in order to overcome its economic-financial crisis and keep its production, employments and creditors’ payments. The company shall submit the reasons which led to its financial crisis situation. Thus, the company should attach to its request: MORE
2) What liability risks exist for the management in Brazil in a corporate crisis?
In light of the current situation we identify the following liabilities’ risks of managing directors in Brazil: e.g. comply with and execute the obligation to obtain and fulfill all the required information in the business documents, payments of contracts and obligations in general may be delayed or even suspended. MORE
3) Is there any state aid available for companies in Brazil due to the Corona crisis?
The Brazilian Government has already issued support measures aid for business in Brazil, e.g. flexibility of some labor regulations, suspension of the severance indemnity fund’s collection and payments to the federal government of “simples” during 3 months, release of more than R$ 5 billion to be loan for public banks to micro and small business. MORE
4) What immediate measures should a company in Brazil take if it is affected by the Corona crisis?
We recommend that the following measures be taken by a company affected by the Corona crisis: e.g. putting together a response team with members of different areas of the company responsible to centralize information and decisions and coordinate the effects and actions in connection with this crisis. MORE
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