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Out-of-court restructuring in the service sector: strategies for smaller companies.

September 30, 2025

Out-of-court restructuring has proven to be an efficient alternative for companies facing financial difficulties, especially in the service sector. For smaller businesses, this tool can allow for debt reorganization in a less costly and faster way than judicial reorganization, while preserving business continuity. 

Unlike traditional judicial proceedings, out-of-court restructuring allows the company to negotiate directly with its creditors, defining a payment plan that, after approval by the Judiciary, acquires the force of an enforceable title. This negotiation takes place in a more confidential manner, which helps to reduce reputational damage and maintain the trust of clients and partners. 

In the service sector, where physical assets are often limited and operations heavily depend on cash flow and customer loyalty, out-of-court restructuring offers the advantage of adjusting financial obligations without halting activities. Defining a realistic plan, aligned with revenue generation capacity, is essential for the agreement to be fulfilled and yield concrete results. 

To achieve good results, it is essential to accurately map the debts and creditors involved, establish deadlines and conditions compatible with the company's financial reality, and conduct the entire process with specialized legal advice. Clear communication with creditors and strict compliance with the legal requirements set forth in Law No. 11.101/2005 are crucial for the success of the procedure. 

More than just a legal recourse, out-of-court restructuring can be a financial management strategy for small and medium-sized service companies, allowing for the reorganization of obligations and the preservation of business activity in a sustainable way. 

If you have any questions about the topics covered in this publication, please contact any of the lawyers listed below or your usual Mazzucco&Mello contact.

Antonio Carlos Cantisani Mazzucco

+55 11 3090-9195

Leonardo Neri Candido de Azevedo

+55 11 3090-9195

Rafael Mello

+55 11 3090-9195

Vitor Antony Ferrari

+55 11 3090-9195

Ivan Kubala

+55 11 3090-9195

This communication, which we believe may be of interest to our customers and friends of the company, is intended for general information only. It is not a complete analysis of the matters presented and should not be considered legal advice. In some jurisdictions, this may be considered lawyer advertising. Please see the company's privacy notice for more details.

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