Camila Vieira Guimarães
Lawyer at Marcos Martins Advogados
Companies have resorted to the institute to maintain business activity during this time of crisis
According to an indicator from Serasa Experian, in April this year 120 companies applied for judicial reorganization, while in March 2020 82 companies applied, showing an increase of around 46% in applications. This increase is a reflection of the economic crisis caused by the impacts of the new coronavirus pandemic (Covid-19).
Serasa Experian’s indicators show that the largest number of requests for judicial recovery were made by small companies (53 requests), also highlighting the significant increase in requests made by medium and large companies compared to previous months.
In the cumulative average between January and March 2020, there were 18 requests for judicial recovery from medium-sized companies, while in April 2020 the volume more than doubled (44 requests). As for large companies, on average between January and March 2020, there were 9 requests for judicial recovery, while in April 2020 there were 23 requests.
The services sector is by far the one that has generated the most requests for judicial recovery, due to the fact that it is one of the most impacted by the Covid-19 crisis: of the 120 requests, 13 refer to the commerce sector, 12 to the industry sector, 3 to the primary sector and 92 to the services sector.
The number of requests for judicial recovery is expected to rise in the coming months in all sectors of the economy.
The institute of judicial recovery provides a legal alternative to entrepreneurs who have a viable business, in order to settle their debts by renegotiating with creditors, but who are experiencing serious financial and economic difficulties, including those resulting from or aggravated by the pandemic. Judicial recovery is fundamentally aimed at preserving the company, its business and jobs.
Marcos Martins Advogados is always aware of the economic indicators affecting its clients’ business activities and is available to seek strategic solutions to their needs.
