Alerts
Covid-19 | TJSP ratifies the understanding that the Judicial Reorganization Plan should not be subject to intervention by the Judiciary, not even due to the pandemic
On 5/14/2020, the 1st Chamber of Business Law of the São Paulo Court of Appeals ratified the understanding that General Meeting of Creditor (GMC) has its own autonomy, and, in view of this, the Judiciary should not intervene in the judicial reorganization plans approved by the GMC, regardless of the current pandemic.
With this understanding, the Chamber overruled a decision from a Lower Court which authorized the payment of only 10% of the credits held by labor creditors of a company under judicial reorganization, due to the Covid-19 pandemic.
The decision also considered that “it is up to the Judiciary, on a case-by-case basis, to analyze the requests arising from the current situation, without hindering the right of creditors, also impacted by the crisis”.
The full decision can be accessed here.
So far, no appeals have been filed against the decision.
