Bankruptcy Law and Insolvency Law

Companies often report consistent profits while their liquidity position quietly deteriorates, with revenue recognition and healthy margins masking stretched receivables, accumulating inventory, and increasingly short-term financing. This divergence between paper profits and actual cash flow is particularly acute in multinational operations, where currency mismatches and complex intercompany arrangements obscure the fundamental question of available unrestricted cash. By the time warning signs become undeni

Winston Taylor partner Rodrigo Carvalho discusses the increasing trend of Brazilian companies returning to restructuring negotiations amid challenging economic conditions. He explains how high interest rates, restricted credit, and shifting market dynamics are forcing businesses to revisit their financial recovery plans, emphasizing that returning to the negotiating table doesn't necessarily indicate failure of the original restructuring strategy.

A major Brazilian oncology treatment provider has filed for extrajudicial reorganisation to restructure nearly US$1 billion in debt, joining a growing trend of Brazilian companies opting for out-of-court restructuring processes. Legal experts suggest this preference for the less costly and time-consuming EJ process over traditional judicial reorganisation is becoming the new norm in Brazil's restructuring market.