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Restructuring & Insolvency
of limited liability companies are reached by criminal liability, as
the Bankruptcy Law equates the condition of the debtor or bankrupt the partners, managers, directors, and officers for criminal purposes.
5. The court administrator
The Court Administrator is an important figure in both Bankruptcy and Judicial Restructuring proceedings, who seeks to maintain the business activities of the debtor, in order to conserve the debtor
and their assets and minimize the negative effects that the termination of a business activity may produce.
In the Judicial Restructuring proceedings, the Administrator must monitor debtor’s activities by issuing monthly reports and
debtor’s compliance with the restructuring plan. In the event of effective non-compliance with the obligations provided in the plan, the administrator must inform the creditors and the judge, suggesting the bankruptcy. If the debtor’s accounts are not approved by
the judge, the administrator will no longer be entitled to their compensation for this role.
6. Competent Court
According to Article 3 of the Bankruptcy Law, the state court
of the place where the main establishment of the debtor is
settle or the subsidiary of a foreign company (headquartered outside Brazil) has jurisdiction to homologate the extrajudicial reorganization plan, to grant the judicial reorganization or the adjudication of bankruptcy.
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