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Restructuring & Insolvency
businesses have a special regime of Judicial Restructuring, since the request for a special plan does not
entail the suspension of the limitation period or actions and executions for credits not covered.
3. Bankruptcy as a consequence of the Judicial Restructuring
The judge will declare debtor’s bankruptcy during the Judicial Restructuring proceedings if:
i. the creditor’s general meetings decides for debtor’s bankruptcy;
ii. the debtor do not comply with the restructuring plan;
iii. the restructuring plan is rejected in creditor’s general meetings;
iv. the debtor fails to present the restructuring plan after the Judicial Restructuring is granted;
4. Bankruptcy
Unlike the Restructuring proceedings, which can only be proposed by
the debtor, the Bankruptcy can
be requested by any creditor with unpaid, liquidated and enforceable claim. In this sense, creditors may request the involuntary bankruptcy of the debtor that, for an unjustified default, fails to comply in due course with a liquid and protested obligation that exceeds 40 minimum Brazilian wages or frustrated the execution
of judgement, if the debtor fails to comply with the obligation and to present enough assets.
In Brazilian Bankruptcy proceedings only the debtor is affected, unlike
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