International Committee

ABI Committee News

Reconfiguration of Labor Claims under the New Brazilian Bankruptcy Law: A Constitutional Hurdle?

Written by: Gilberto Deon Corrêa Junior [1]
Veirano Advogados; Porto Alegre, Brazil

Since the new Brazilian "Bankruptcy Law" (Federal Law No. 11101) was enacted on Feb. 9, 2005, and became effective on June 9, 2005, scholars and practitioners have held wide-ranging discussions about the constitutionality of some of its provisions. The new legislation represents a paradigm shift from a legal framework dating back decades as new provisions were added to protect the rights of labor and tax claimants.

The former bankruptcy system coincided with a period of recognition and consolidation of labor rights, which influenced that system and its application by courts for 60 years. For instance, the old bankruptcy law afforded priority to labor and tax claims in an unlimited amount and often to the detriment of other secured and unsecured creditors.

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Committee Session at the 27th Annual Spring Meeting

The 27th Annual Spring Meeting: Washington, D.C. like you have never seen it before! Located a few minutes from Capitol Hill, on the historic Potomac River, the Garylord National Resort & Spa offers the most deluxe meeting and event space in the area. This year's conference will be held April 1-4 and will have a special focus on the tough policy choices facing the new administration and Congress.

The International Committee will hold a session on Friday morning at 8:00 a.m. Ronald J. Silverman of Bingham McCutchen LLP in New York will moderate the panel entitled "Representing the Foreign Creditor in Today's Financial Meltdown." Panelists will include David M. Reeder of Hoffman Polland & Furman PLLC in Los Angeles, Robert J. Rosenberg of Latham & Watkins LLP in New York and Luis Salazar of Greenberg Traurig, LLP in Miami. Click here to register today!