News New rules for recovery and insolvency 12/04/2022

The new measures to support and streamline the processes of restructuring companies and payment agreements introduced by Law 9/2022, of January 11, came into force yesterday. This diploma amends the Insolvency and Corporate Recovery Code (CIRE) and several rules within the scope of the Special Revitalization Process (PER).

The new rules are immediately applicable to pending cases within the scope of the CIRE and apply to PER that are requested from April 11 onwards. They only apply to PER introduced after April 11, 2022 in the following aspects:

• application, subsequent processing and effects;
• conclusion of negotiations with the approval of a recovery plan leading to the revitalization of the company;
• approval of out-of-court company recovery agreements; and
• duty to file for insolvency.

The new rules apply from 11 April to insolvency proceedings of individuals that are pending on that date and that:
• have already granted a preliminary injunction for the exoneration of the remaining liability; and
• the period of assignment of available income in progress is already three years old on that date, it is considered to have ended. This possibility does not affect the processing and judgment, in the first instance or in the appeal phase, of any pending issues related to the incident of exoneration of the remaining liability, such as those referring to the value of unavailable income, terms of allocation of the debtor’s income or requests for early termination of the exemption procedure.

You can consult the text of the diploma here, or click on the link to the respective DRE page.

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