The Crisis Map
Judicial reorganisation (recuperação judicial), from filing to plan, from the decision-maker's perspective
The thesis
Judicial reorganisation saves the company and frequently wipes out the shareholder. The decision to file has a window, and it closes much earlier than the controlling shareholder imagines
What the study establishes
Debt-to-equity conversion dilutes the original shareholder by proportions exceeding ninety per cent
The approved plan is negotiated with creditors, and the controlling shareholder has less leverage than assumed
Filing early preserves alternatives; filing late reduces judicial reorganisation to an orderly liquidation
Contents
- The decision to file
- The process
- The plan
- The creditors' meeting
- Dilution
- Exiting judicial reorganisation
- The cases
- The mandate