Companies turn to extrajudicial recovery to avoid bankruptcy: how it works

Prompted by the filings of GPA, Raízen and Oncoclínicas, Folha explains how extrajudicial recovery works, an agreement negotiated directly between a company and its creditors that the courts only ratify, and how it differs from judicial recovery. Marlon Oliveira, partner at TCP Partners, explains that labor claims rarely enter this type of plan, because including them requires complex collective bargaining with unions, which makes the instrument harder to use when a company wants a quick renegotiation.

Source: Folha de S.Paulo, July 14, 2026.