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Covid-19 | São Paulo Court denies an injunction request for suspension of debt collections due to the pandemic.
The 1st Court of Bankruptcy and Judicial Reorganizations of São Paulo/SP rejected a claim submitted by the Máquina de Vendas Group requesting the suspension of debt collection and protective measures typical of companies under judicial reorganization proceeding, on 3/26/2020.
The Group alleged suffering an abrupt decrease in its revenues after the closure of its retail stores, which would be responsible for 92% of the Group’s revenues, and filed requests such as the suspension of all lawsuits and enforcement proceedings against the Group, the prohibition of attachment of its assets and release of assets seized, the suspension of the maturity of rentals and the requirement of negative tax certificates by public authorities.
The Judge rejected the claims, pointing out that there is no legal support for the claim and that “part of the protective measures required by the Plaintiff Group automatically result from the processing of a judicial reorganization, the currently existing institute in the Law for the hypothesis of economic and financial crisis, as acknowledged in the injunction request”, emphasizing that “there is no room for the creation of a broader protective mechanism by Court decision, even if we recognize the exceptionality of the moment we are living. ”
The full text of the decision in Portuguese can be accessed here.
So far, the Group has not filed an appeal.
