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In view of the various information contained in Decree-Law 118/2021, we summarize the 10 regulations in force as of August 25:
Tax transaction
Applied in case of lack of membership of the bodies concerned and not of lack of vote. Creditor institutions must express themselves within 90 days of filing the satisfaction proposal
Amendments to the composition and restructuring agreements
It will allow substantial changes to be made to the plan and agreements, however, before approval, a new green light from creditors will be necessary. After approval, the changes must ensure the execution of the agreements. In both cases, it is still necessary to renew the professional's certificate
Worker protection
The court may authorize the payment of salaries to workers engaged in the activity whose continuation is expected, for the monthly payments prior to the filing of the appeal by composition
Extended Effective Restructuring Agreements
The agreement will also have effects on non-member creditors, belonging to the same category due to homogeneity of legal position and economic interests, so it will not only affect financial intermediaries
Moratorium agreement
It will allow all entrepreneurs (even non-commercial) to agree with creditors to delay credit maturities, waive deeds or suspend executive and conservative actions, etc. as long as it does not result in a waiver of credit. The moratorium will also apply to non-member creditors of the same category who must be informed.
Concessional restructuring agreements
It will facilitate recourse to the Institute because the% of creditors necessary for the green light to the agreement proposed by the debtor is reduced
Unlimitedly responsible members
The company's restructuring agreements will also be effective against unlimited responsible shareholders.
Two-year moratorium on privileged creditors
The time period of the moratorium for the payment of creditors with a privilege, pledge or mortgage, provided for in the case of an agreement with business continuity, will increase from 1 to 2 years
Certification of recovery plan
The possibility of regulating the crisis situation with a certified recovery plan, published in the register of companies before the expiry of the deadline granted by the court, is extended to 31 December 2022.
Impredictability
The impossibility of appeals for the termination of the preventive composition and the declaration of bankruptcy against entrepreneurs who applied for an approved preventive composition after January 1, 2019, is extended to December 31, 2021.
For more information, we recommend that you analyze the Decree Law
