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Companies in distress · SPD Advocacia

Is your company in debt? Out-of-court reorganization may avoid court-supervised reorganization

In an out-of-court reorganization (recuperação extrajudicial), the company negotiates a plan with its creditors and asks the judge only to confirm it. Once the support required by law is reached, the plan also binds creditors of the same class who did not sign. This route is usually faster and less costly than court-supervised reorganization (recuperação judicial).

Law 11,101/2005Professional confidentialityReplies on WhatsApp
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How it works

Negotiated and court-confirmed plan

Under art. 163 of Law 11,101/2005, the debtor may request confirmation of a plan that binds all creditors it covers, provided it is signed by creditors holding more than half of the claims in each class.

Since Law 14,112/2020, the request may be filed with the support of at least 1/3 of all claims in each class, with a commitment to reach the quorum within a non-extendable period of 90 days from the filing (art. 163, § 7º).

Limits

What is left out

The plan covers all claims existing on the filing date, except tax claims and those listed in § 3º of art. 49, such as claims secured by fiduciary transfer (alienação fiduciária). Labor and workplace accident claims are only included through collective bargaining with the union of the employee category (art. 161, § 1º).

For debts with the tax authorities, the usual route is a tax settlement (transação tributária) or an installment plan, reviewed in parallel.

Requirements

What we review

List of creditors

Claims by class and amounts.

Cash flow

Real capacity to pay.

Collateral

Fiduciary claims and other guarantees.

Tax debts

Settlement or installment plan in parallel.

Source: Lei 11.101/2005, arts. 161 and 163, as amended by Lei 14.112/2020.

What is your case?

Situations the firm handles

Banks

Debts with several banks

Plan with the unsecured creditors.

Law 11,101, art. 163
Suppliers

Many suppliers past due

Collective negotiation with creditor support.

Law 11,101, art. 163
Partial quorum

Support from 1/3 of the claims

Filing with 90 days to reach the quorum.

Art. 163, § 7º
Labor claims

Labor liabilities

Collective bargaining with the union.

Art. 161, § 1º
Tax authorities

Tax debt

Settlement or installment plan.

Case review
Alternative

Company that wants to avoid court-supervised reorganization

Comparison of the available routes.

Case review
This page provides general information, does not replace an analysis of the case and there is no guarantee of results.

Step by step

How the firm works

  1. Diagnosis. Debts, collateral, cash flow and creditors.
  2. Plan. A feasible payment proposal, with terms and discounts.
  3. Negotiation. Creditor sign-ons and documentation.
  4. Confirmation. Filing with the judge and monitoring of performance.
+5 thousand cases handledTen years of law practicePractice before the STJ and the STFFeatured in G1, UOL, Estadão and TV Globo

Case review

Let us review your company situation

Answer the questions, one at a time. At the end you can attach documents, which go straight to a folder in the firm's Drive, and send the summary via WhatsApp. Everything is protected by attorney-client confidentiality.

Common questions

Frequently asked questions

How does it differ from court-supervised reorganization?

In the out-of-court route, the company negotiates the plan first and asks the judge only for confirmation. It does not cover tax claims and has its own rules for labor claims.

Do I need the support of all creditors?

No. Support from more than half of the claims in each covered class is enough. With 1/3, the company may file and complete the quorum within 90 days.

Does the plan bind creditors who did not sign?

Once confirmed with the legal quorum, the plan binds all creditors of the covered classes.

Do you serve companies in other states?

Yes. We work throughout Brazil, with electronic case files and online meetings.

How does engagement work?

After the review, the firm sends a written fee proposal before any engagement.

Lawyer for out-of-court reorganization

SPD Advocacia serves companies throughout Brazil and abroad in debt renegotiation and out-of-court reorganization.

Quorum

More than half of the claims in each class, with the option to file with 1/3 and complete the quorum within 90 days.

Excluded claims

Tax claims and claims under art. 49, § 3º, are left out; labor claims require collective bargaining.

Informational content, in accordance with OAB (Brazilian Bar) Provision 205/2021. Each case depends on a review of the documents, and no result is promised.

Responsible lawyers

  • Sidnei Pedro Dias OAB/GO 48.603 · OAB/DF 68.207 · OAB/SP 501.693 · leads the firm’s cases
  • Adrielle Oliveira OAB/GO 76.298 · civil, family, business and international matters
  • Eduardo Prado OAB/GO 59.836 · criminal and electoral law

Online service throughout Brazil and for Brazilians abroad. Own office in Anápolis, Goiás, Brazil: Av. Juscelino Kubitschek, 500, Genesis Office, rooms 1506 and 1507. About the firm →