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Navigating Judicial Reorganizations Under the Brazilian Bankruptcy Law

August 4, 2016

O'Melveny partner John Rapisardi and counsel Joseph Zujkowski co-authored the New York Law Journal article “Navigating Judicial Reorganizations Under the Brazilian Bankruptcy Law,” which provides an overview of the Brazilian Bankruptcy Law related to judicial reorganizations. The first segment of the two-part article, published August 4, 2016, focuses on the administrative and procedural aspects of a judicial reorganization. 

According to the authors, “the Brazilian Bankruptcy Law establishes a fast-paced reorganization framework that gives creditors significant leverage in plan negotiations. Although the debtor has significant control over the dissemination of information and creditors cannot propose their own plan, creditors can reject the debtor’s proposal and automatically convert the case to a bankruptcy and liquidate the debtor’s assets. This trump card should incentivize debtors to put forth serious restructuring proposals and invites debtor-creditor negotiations to achieve an approvable plan.”