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| vol 16, num 1 | March, 2021 |
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| Overview on Recent Changes to Insolvency Law in Brazil |
| 2020 was undoubtedly a massive challenge for all countries, but it was especially dramatic for Brazil, which has been severely hit by coronavirus outbreak. Among the most affected countries, Brazil is fighting one of the biggest battles of its history, with a little over 10 million cases so far and a case-fatality rate of 2.4%.
The pandemic has definitely burdened the Brazilian economy, which was still recovering from a crisis that started in late 2014. The Brazilian Institute of Geography and Statistics (IBGE) revealed that the year ended with an unemployment rate above 14%, a record level since 2012 and representing more than 14 million unemployed people.
In the midst of it, the Brazilian government approved some important changes to the Brazilian Bankruptcy Act. Nevertheless, the necessity of amendments to the legislation was not brought about as a result of the pandemic; the issue had actually started to be discussed long before the outbreak, and it was predominantly associated with an inefficient insolvency system.
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| Canada and the Development of Reverse Vesting Orders |
| In Canadian proceedings, it had previously been common for assets of the debtor to be conveyed to a purchaser through the granting of a vesting order. Normally, the court supervising the relevant insolvency proceeding in approving the transaction would issue an order that title to the purchased assets would vest in the purchaser “free and clear” of the claims of the vendors’ creditors. Instead, the purchase price proceeds would stand in place of the purchased assets. Creditors’ claims against the purchase proceeds would rank in the same order of priority as they had against the assets that had been sold. Such orders were routinely
granted if the sale occurred from a receiver or a debtor that was operating under some form of court protection. |
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| The International Committee’s ‘Silver Lining’ in a Worldwide Pandemic: The COVID-19 Project for GlobalInsolvency.com |
| The term “silver lining” comes from Milton’s Comus, in which the silver lining is the light of the moon shining behind a cloud. It is very difficult to find a silver lining in the COVID-19 pandemic, which has caused more than 500,000 deaths in the U.S. and 2.4 million deaths worldwide. There have been some positives in how people have come together to address the crisis, and to adapt and adjust to the conditions created by the crisis. Members of the ABI International Committee, over 30 professionals, worked individually to report on 19 different jurisdictions. They answered the call to create a template for the analysis, focused
on each jurisdiction, and created an analysis of individual measures undertaken by the various countries in a comparative law format. |
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| No Tsunami of Insolvency: A Report from Down Under |
| In 2020, when the Australian governments (federal and the states) started to take active steps to suppress COVID-19, the insolvency profession expected that the economic downturn would result in a “tsunami” of insolvency. In hindsight, this was a major miscalculation that did not anticipate massive fiscal spending to support the economy and the temporary suspension of insolvent trading laws and creditor winding-up rights. Insolvency practitioners and lawyers in Australia are still waiting at the date of this article for a boom in insolvency appointments to begin. |
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| Register Today for ASM! |
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ABI is pleased to announce the return of the Annual Spring Meeting April 12-22 — this year in a cutting-edge virtual format. Employing the same innovative platform that made last fall’s Insolvency 2020 event such an astounding success, this conference — always one of the most significant annual gatherings of bankruptcy and insolvency professionals in the country — will introduce a number of new and improved online networking features.
This year, the Mediation Committee will be partnering with the Emerging Industries and Technology Committee to host a panel titled "Insolvencies of Cannabis Producers and Their Cross-Border Implications.” |
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