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Covid-19 | The judicial reorganization plan is flexibilized for the maintenance of the company's activities due to the pandemic
In a decision rendered by the 1st Court of Bankruptcy and Judicial Recovery of the Central Court of São Paulo/SP, Viação Itapemirim, under judicial reorganization, was authorized to withdraw 80% of the sums raised from the sale of its assets to fund its current operations, as well as the collection of 10% of future auctions. None of the measures were previously foreseen in the company’s judicial reorganization plan.
The request made by the company due to the drastic decrease of its activities, resulting from the pandemic caused by Covid-19.
According to the decision, the “company proven the capacity to overcome its economic and financial crisis” under normal circumstances. In addition, the judge highlighted the necessity of adapting the judicial reorganization proceeding to fulfil its object in situations of abnormality such as the present one.
Two creditors have filed interlocutory appeals against this decision up to this moment; however, none decision has been issued by the State Court of Appeals yet.
The full decision can be accessed here.
