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
1
Debt-to-equity conversion dilutes the original shareholder by proportions exceeding ninety per cent
2
The approved plan is negotiated with creditors, and the controlling shareholder has less leverage than assumed
3
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