The judicial recovery of rural producers as legal entities and Brazilian jur...

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Agriculture and agribusiness contributed 23.5% of the Gross Domestic Product (GDP) in 2017, estimated at R$6.6 trillion, according to a survey by the Brazilian Confederation of Agriculture and Livestock (CNA). The record harvest led the agricultural sector to grow 13% in 2017 , the best performance since the beginning of the IBGE historical series in 1996, surpassing the 8.4% increase recorded in 2013. In 2018, if there are no surprises, the participation in GDP will grow between 0.5 and 1%.


All this strength, paradoxically, does not free the sector from crises, as agriculture, at the base, is an open-air industry . In addition to climate risks, producers face the climate of the B2B Lead dollar and the market, the unbridled increase in the price of inputs (defensive products, fertilizers and fuels), the lack of financing lines, commercial protectionism from foreign competitors, among others. factors. The successive crises that agriculture has experienced in the last 15 years have left many farmers decapitalized and, above all, in debt. Unofficially, these debts are estimated to be around R$300 billion.

Those who operate in agribusiness as a company have the benefits of the Bankruptcy and Business Recovery Law (Law 11,101/2005), which, in June, completed 13 years. In fact, during this period, more than 5 thousand companies in industry, commerce and service provision filed requests for judicial recovery across the country. Without a doubt, it was a major advance in relation to the old Bankruptcy Law (Decree-Law 7,661/1945), as, for the first time, the bankruptcy system no longer primarily protects the creditor, but mainly protects the debtor. The imperative of liquidation leaves the scene and the basic principle of preserving the company enters.

Companies in difficulty, first of all, must satisfy the criterion in article 48 of the LFRE, which, among others, is to prove that they have carried out business activity for more than two years. Once this exercise is proven, they are entitled to a series of advantages, in addition to avoiding the bankruptcy process: extending payment deadlines and reducing debt, establishing collective work agreements, better dialogue with creditors and, most importantly, the suspension of ongoing judicial actions and executions.



By renegotiating liabilities with creditors and suppliers, and stopping the drain on resources, vital for the resumption of the virtuous economic cycle, the company in difficulty has a real chance of turning things around . Certainly, many will prove economic viability and emerge victorious from the recovery situation; others, without viability, will go bankrupt, giving way to more competitive players . It's part of the game. It is undeniable, however, that this is a beneficial solution for all parties: owners, managers, employees, creditors or suppliers of the company under recovery.