By Vitor Antony Ferrari

The Judicial Administrator plays a fundamental role in the process of converting a judicial recovery into bankruptcy. Conversion occurs when a company undergoing judicial recovery fails to comply with the recovery plan or the conditions established by law, which leads to the conversion of the recovery process into a bankruptcy process. The obligations of the Judicial Administrator in this context include:

Analysis and opinion: The Judicial Administrator must analyze the financial and operational situation of the company undergoing recovery and prepare a detailed opinion on the unfeasibility of continuing the recovery plan. This opinion is essential to support the judicial decision to convert the company.

Monitoring the process: The Judicial Administrator must monitor the progress of the judicial recovery process and identify any non-compliance with obligations by the debtor company. This may involve analyzing financial reports, visiting the company's facilities and holding meetings with management.

Communication with creditors: The Judicial Administrator must also maintain constant communication with creditors and represent their interests. This includes informing creditors about the company's situation, the proposed merger, and any impact on credit claims.

Submission of the request for conversion: The Judicial Administrator is often responsible for submitting the request for conversion of the judicial recovery into bankruptcy to the court. This must

be done based on solid evidence demonstrating the unfeasibility of the recovery plan.

Administration of the company's assets: After the merger, the Judicial Administrator will be in charge of administering the bankrupt company's assets. This will involve collecting all assets and selling assets to pay creditors, conducting inventories, and managing the company's operations until liquidation.

Reporting to the Court: The Trustee must provide regular reports to the court on the progress of the bankruptcy process, including information on the administration of assets and the distribution of proceeds to creditors.

Accountability: The Judicial Administrator is subject to strict accountability and auditing of his/her actions in the bankruptcy process, ensuring transparency and compliance with the law.

The obligations of the Judicial Administrator during the conversion of judicial recovery into bankruptcy aim to ensure the protection of the interests of creditors and the correct liquidation of the assets of the debtor company. It is important that he acts impartially and diligently to fulfill these obligations in accordance with the legislation in force in the country where the process is taking place.