In conjunction with the 50th Anniversary Congress of the United Nations Commission on International Trade Law (UNCITRAL), counsel Stacy Lutkus co-authored a paper titled “Cross-Border Insolvency in Brazil: A Case for the Model Law.”
With Brazil is in the midst of a severe, multi-year recession, there has been significant focus by current President Michel Temer to determine how to improve conditions in Brazil, including austerity and efforts to reform Brazil’s labor and tax laws. Little attention, however, has been paid to the potential benefits of proposed legislative bills that are currently before the Brazilian National Congress which would substantially adopt modified portions of the UNCITRAL Model Law on Cross-Border Insolvency.
The paper examines the potential impact that adoption of the Model Law (or a modified version thereof may have on cross-border restructurings involving Brazilian companies. It also discusses whether the Model Law might facilitate such restructurings and thereby assist in the rehabilitation of such companies and the Brazilian economy as a whole.