The APE (Out-of-Court Preventive Agreement) is a faster and more economical process agreed privately with creditors in advance and subsequently submitted for judicial approval, while a reorganization proceeding (concurso preventivo) is a formal judicial process from the outset.

It is the situation in which a company lacks sufficient economic solvency to meet its debts as they become due. It is the central requirement for access to a reorganization proceeding, and early analysis makes it possible to determine the most appropriate tool: direct negotiation, an APE or a reorganization proceeding.

A reorganization proceeding allows a company to reorganize its liabilities and continue operating, while potentially retaining management of its business. From the filing, interest on unsecured debt is suspended and agreements involving reductions, grace periods or installment payments may be negotiated. Bankruptcy, by contrast, involves liquidation of the debtor's assets.

You must submit your claim for verification within the insolvency proceeding so that it can be judicially recognized. We represent creditors in the verification, challenge and review of claims and in the defense of their rights throughout the proceeding, including, where applicable, challenges to the debtor's proposal.