Put: Victor Antony Ferrari, Antonio Mazzucco and Ivan Kubala

As is known, Judicial Recovery is a judicial procedure that, since 2005, has the objective of helping companies overcome their economic crises, maintain the jobs of their employees and collaborators, as well as continue generating wealth, using an orderly renegotiation with creditors that is summarized in a Judicial Recovery Plan. 

But how exactly does a Judicial Recovery begin? 

The Judicial Recovery procedure is complex and detailed, normally requiring comprehensive technical knowledge in order to protect the Company's interests, so that the desired effects are achieved with its distribution.  

However, the Law establishes the basic rules so that a Company can use this procedure, which has proven over the years to be beneficial in maintaining the activities of those who use this resource in order to avoid bankruptcy. 

Therefore, the request for Judicial Recovery must be accompanied by the following documents: 

1. the presentation of the specific causes of the debtor's financial situation and the reasons for the economic and financial crisis; 

1. the accounting statements relating to the last 3 (three) financial years and those raised specifically to support the request, prepared in strict compliance with applicable corporate legislation and necessarily consisting of: 
   

1. i) balance sheet;
2. ii) statement of accumulated results;

iii) demonstration of results since the last financial year; 

1. iv) management report on cash flow and its projection;
2. v) description of the companies in the corporate group, de facto or de jure;
   

1. the complete nominal list of creditors, subject or not to judicial recovery, including those with an obligation to do or give, indicating the physical and electronic address of each one, the nature and updated value of the credit, detailing its origin and the maturity regime;
   

1. a complete list of employees, including their respective functions, salaries, compensation and other payments to which they are entitled, with the corresponding month of competence, and a breakdown of amounts pending payment;
   

1. certificate of regularity of the Company Under Reorganization in the Public Registry of Companies, the updated articles of incorporation and the minutes of appointment of the current administrators;
   

1. the list of private assets of the controlling shareholders and administrators of the debtor;
   

1. updated statements of the debtor's bank accounts and any financial investments of any kind, including in investment funds or on stock exchanges, issued by the respective financial institutions;
   

1. certificates from the protest offices located in the district where the debtor is domiciled or headquartered and in those where he has a branch;
   

1. the list, signed by the debtor, of all legal actions in which he/she is a party, including those of a labor nature, with an estimate of the respective amounts demanded.
   

1. a list of all legal actions and arbitration proceedings in which the party is a party, including those of a labor nature, with an estimate of the respective amounts demanded;     
   

1. the detailed report of tax liabilities; and 

1. the list of assets and rights forming part of non-current assets, including those not subject to judicial recovery, accompanied by legal transactions concluded with extra-bankruptcy creditors.  
   

As can be seen, it is necessary to present a series of documents, certificates and information essential to complying with legal requirements so that Companies can avail themselves of the benefits and protection of the Judicial Reorganization Law.  

Judicial Recovery allows Companies to gain some breathing space in order to enable their business to resume, especially with the suspension of Executions and other restrictive measures of assets and rights that directly affect the Company's activities,  

Therefore, the work of experienced professionals with dedication to carrying out the work is essential for the procedure to have the expected effectiveness, which ultimately means the maintenance and recovery of the Company.