LEGAL TREATMENT OF BRAZILIAN OUT-OF-COURT REORGANIZATION PLAN IN CASE OF CROSS-BORDER INSOLVENCY

Abstract

With the enactment of Law 14.112/2020,
Brazil adopted, with few changes, the
UNCITRAL Model Law on Cross-Border
Insolvency. This article analyzes the legal
requirements for recognition of foreign
proceedings and if Brazilian out-of-court
reorganization plan could, in thesis, be
qualified as one for the purpose of recognition
and legal cooperation. We looked at Brazilian
out-of-court reorganization plan in its both
modalities. Especial attention was done to
two eligibility requirements set by article 2
of UNCITRAL Model Law: the collective
nature of the proceedings and the need of
control or supervision by a foreign authority.
After revising UNCITRAL legislative guide,
UNCITRAL Digest of Case Law and few
foreign rulings, the article concludes that
Brazilian out-of-court reorganization plan
meets the legal requirements for recognition
as a foreign proceeding.