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Judicial Recovery

Judicial Recovery: a court-supervised legal instrument in which a company in crisis negotiates a debt payment plan with its creditors to overcome the crisis and avoid bankruptcy.

TCP advises companies that require Extrajudicial or Judicial Recovery. Its services include planning, preparing the list of creditors, creating payment plans, negotiation with creditors across different classes, selling assets or UPIs and supporting the company at the Creditors' Meeting or in gathering creditors' sign-ups to the plan

Phases of a judicial recovery process: 1. Planning: prepare, with counsel, the documents and the list of creditors; 2. Filing and court order to process the case: 180-day stay of enforcement actions on claims subject to the recovery, extendable once, on an exceptional basis; 3. Recovery plan, filed within 60 days (non-extendable) of publication of the order: drafting the plan with counsel and classification of critical suppliers; 4. If objections are filed, general creditors' meeting, within 150 days of the order: engagement and negotiation with creditors and amendments to the plan; 5. Court grants the judicial recovery: performance of the plan, court supervision for up to 2 years and assistance to creditors during performance of the plan.

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