Vol 18 (2021) - Issue 4

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Cross-Border Insolvencies in Brazil: An Overview of the New Provisions Incorporating the 1997 UNCITRAL Model Law

Synopsis
A broad reform to Brazilian insolvency legislation introduced new rules regarding cross-border insolvencies through the incorporation of the 1997 UNCITRAL Model Law ('Model Law') with modifications. This matter has been neglected for decades in Brazil and the new provisions are set to drastically change the Brazilian restructuring & insolvency framework. The new rules allow Brazilian courts ('Courts') to recognise foreign main and non-main insolvency proceedings and to grant appropriate relief. Courts are now empowered to cooperate and communicate directly with foreign authorities and there are also provisions aimed at the coordination of concurrent insolvency proceedings. In all these instances, Courts are authorised to exercise a wide range of discretion. As a result, Brazil finally has suitable provisions to deal with cross-border insolvencies.