Publicado em 17/04/2020

São Paulo Court of Appeals denies suspension of payment to labor creditors and essential services to a company in judicial reorganization

In a decision ruled on 4/14/2020, the 1st Business Chamber of the São Paulo Court of Appeals denied the injunction requested by a company under judicial reorganization to suspend the payment due to labor creditors and services essential to its activities as result of the COVID19 pandemic.

The decision considered that “in spite of the unfortunate Covid-19 epidemic that worn down our country and the world, causing a serious financial and social impact, the claimant’s requests violate the constitutional principle of legality” and the Judiciary is not responsible for interfering in the judicial reorganization plan approved by the general creditors meeting and for the purpose to “compel companies to supply a product, even if the other party is undergoing judicial reorganization or undergoing a serious economic and financial crisis”.

Up to this moment, there are no appeal filed against this decision.

The full text of the decision in Portuguese can be accessed here.