CNJ approves resolutions to improve the business recovery environment.

The National Council of Justice approved two resolutions this Friday (July 17th) to improve the environment for judicial reorganization of companies in the country. The measures are the result of discussions by a working group established by Ordinance 162/2018.

With the economic crisis caused by the Covid-19 epidemic in the country, a record number of companies are expected to file for bankruptcy, and the resolutions aim to prepare the Judiciary to absorb this demand.

One of the approved measures is a recommendation that Brazilian courts implement Business Conflict Resolution and Citizenship Judicial Centers (Cejusc). The proposal is that within a period of 60 days from the first session, the Business Cejusc should enable individual and collective negotiations.

The document notes that the initiative has already been implemented or is in the process of being implemented in states such as São Paulo, Paraná, Rio de Janeiro, Espírito Santo, and Rio Grande do Sul. "These centers offer a forum for prior negotiation, avoiding the filing of collection and insolvency lawsuits. As a consequence, a decrease in the number of new lawsuits is expected, contributing to the prompt overcoming of the crisis we are going through," the document states.

The CNJ also recommends that courts take steps to train staff specifically to perform conciliation and mediation functions in business matters.

Another suggestion from the CNJ is that courts begin producing standardized reports for monitoring judicial reorganization proceedings. The document, called the Administrative Phase Report, should contain a summary of analyses conducted to produce the notice containing the list of creditors.

According to the resolution, the objective of the standardized reports is to increase the speed and transparency of judicial reorganization processes, allowing creditors broad access to information of interest to them at the time the notice is published.

One of the professionals who participated in the working group, lawyer Samantha Mendes Longo, partner at Wald, Antunes, Vita, Longo e Blattner Advogados, praises the measures.

"Through this new recommendation, the CNJ (National Council of Justice) is taking another important step towards social pacification, encouraging parties to resolve their conflicts more autonomously. Encouraging all courts in Brazil to create a Cejusc (Specialized Center for Judicial Settlement) focused on business matters is a timely measure that will bring numerous benefits to entrepreneurs and their creditors," he explains.

Monthly reports on the debtor's activities, procedural progress, and procedural incidents are also mentioned in the CNJ recommendation.

Source: Conjur