Cross-border insolvency in Brazil, Germany and Russia
Brazil is the seventh largest economy in the world and the largest in Latin America. On the one hand, several multinational companies have established and continue to establish subsidiaries and to invest in Brazil. On the other hand, Brazilian companies increasingly operate abroad having assets, debtors and creditors located across the globe. In view of the current difficult economic situation in Brazil, the increase of international trade and investment flows may give rise to complex cross-border insolvency situations which are not addressed by the Brazilian domestic legislation or consistent court practice, as for instance creditor discrimination in the course of parallel multi-jurisdictional proceedings.
Russia faces similar challenges. Companies doing business with Russian counterparts or operating in the country through a Russian subsidiary should be mindful of certain requirements related to Russian bankruptcy law. Germany, at its turn, looks at a record low of corporate bankruptcies, at the same time being praised for its efficiency in resolving insolvencies, e.g. ranked 3rd globally by the World Bank Group. For debtors with business ties to Germany, the treatment of foreign insolvency cases by German courts may be of substantial interest.
Against this background, in the current issue of our newsletter, we look into the main cross-border insolvency challenges in Brazil and Russia as well as into the specific case of recognition of Brazilian court-supervised reorganization and liquidation proceedings in Germany.
Download (English): Newsletter Brazil Desk August 2015
Download (Portuguese): Newsletter Brazil Desk August 2015
Sign up for our Brazil Desk Newsletter
Would you like to receive legal news about Brazil regularly?
Sign up for our Brazil Newsletter by clicking on 'subscribe now' on the right hand side.