Camila Vieira Guimarães
Lawyer at Marcos Martins Advogados
The 1st Reserved Chamber of Business Law of the São Paulo Court of Justice (TJSP) disregarded the dissenting vote of a single creditor in its class and ratified the judicial reorganization plan.
The Chamber’s decision was based on the logic that, exceptionally, it will be impossible to meet the requirement of approval of the plan by 1/3 of the creditors when one of the classes is made up of a single creditor whose claim alone exceeds the 2/3 approval requirement.
In these cases, it is inconceivable to achieve the approval of 1/3 of the creditors present in the class, as advocated by the crawl down. In addition, the rejection of this single creditor to the plan would imply the decree of bankruptcy of the reorganized company, in contrast to the will of the majority of the other creditors.
The decision was rightly based on the principle of business continuity and the active participation of creditors.
The institute of judicial reorganization provides a legal alternative for entrepreneurs who have a viable business, in order to settle debts by renegotiating with creditors, but who are experiencing serious financial and economic difficulties, with the fundamental aim of preserving the company, its business and jobs.
Marcos Martins Advogados is always attentive to decisions affecting the interests of its clients and is available to seek strategic solutions to their needs.
