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Covid-19 | Law Project proposes extension of stay period and suspension of ongoing judicial reorganization plans due to the pandemic
The Chamber of Congressmen is currently discussing the Law Project No. 2070/2020 (full text here), which provides a few transitional and emergency changes to the Judicial Reorganizations proceedings, during the COVID-19 pandemic.
In general, the Project presented by Federal Congressman Roberto Alves, sets forth:
That the stay period of proceedings against the companies under Judicial Reorganization, granted until March 20, 2020, shall be extended until October 30, 2020;
The possibility of holding general meeting of creditors, virtually, in order to avoid, as recommended by the WHO, the crowding of people in the same environment;
The stay, also until October 30, 2020, of the execution of the Judicial Reorganization Plans in favor of the companies which proves a minimum revenue drop of 40% (forty percent), with the exception to the obligations related to the payment of labor related creditors and;
The prohibition of the Judicial Reorganization conversion into bankruptcy, during the period mentioned in item iii above.
The Project is currently waiting for deliberation from the President of the Chamber of Congressmen and there is still no date set for its voting.
