Put Victor Antony Ferrari and Ivan Kubala  – 01/04/2020

In the wake of what we had already mentioned in the article published with the theme “The impact of the pandemic on Companies in Judicial Recovery and Legal Measures to Mitigate its Effects”, the National Council of Justice – CNJ approved yesterday, March 31, in its 307th Ordinary Session, recommendation 63/20202 with recommendations to judges regarding the treatment to be given to judicial recovery processes during this time of pandemic.

Among the CNJ's recommendations, the following stand out:

• Prioritization of analysis and decision regarding the collection of values for creditors and companies under recovery;
• Suspension of in-person General Creditors’ Meetings;
• Extension of the Stay Period, that is, the period of suspension of actions and executions brought against companies under judicial recovery, provided for in art. 6 of Law No. 11,101/05;
• Authorization to present modifications to the Judicial Recovery Plan, provided that the reduction in capacity and the negative impact on activities resulting from the spread of COVID-19 are proven;
• Maintenance of supervision of Judicial Administrators, remotely or virtually;
• Caution in the assessment of urgent requests, such as eviction orders and restrictive acts.

The aforementioned recommendations meet the desires expressed by several companies that are undergoing judicial recovery, as well as those that will need to seek assistance from the aforementioned institute, bringing greater legal security at a time of uncertainty in the national economy, aiming at the preservation of business activities and the social function of companies, which will be essential for facing the momentary crisis and resuming the economy.