Vol 18 (2021) - Issue 1

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The Impacts of COVID-19 on Insolvency Proceedings in Brazil

Synopsis
Brazil is currently the third most affected country by the COVID-19 pandemic, with nearly five million diagnosed cases of contamination directly linked to the coronavirus. This has had a significant impact on the Brazilian economy.
A Bill of Law was introduced to temporarily address the crisis faced by companies caused by the pandemic.
On 21 May 2020 the Bill of Law was approved by the House of Representatives but we are yet to see any new developments and it is likely that it will not be voted for by the Senate.
Considering the lack of a specific and provisional law to address the financial and economic impacts faced by companies, the Judiciary Branch and the National Council of Justice have adopted other measures. In addition, we have also seen an impact on the interpretation of the current in force Brazilian Bankruptcy Law (Law No. 11.101/2005) on courts’ decisions in insolvency cases.