Brazilian Bankruptcy Filings Drop 29.6 Percent in January
RIO DE JANEIRO, BRAZIL – Bankruptcy filings in Brazil dropped 29.6 percent in January this year compared to December and dropped 2.7 percent in the 12-month period ended in January, according to Boa Vista.
Court-ordered bankruptcies recorded a 13.4 percent decline. Petitions for judicial reorganization and court-ordered recoveries dropped 8.2 and 6.4 percent, respectively, in the 12-month period ended in January.
In a note, the Boa Vista team states that the decline in bankruptcy and judicial reorganization requests in the 12-month period ended in January is due to the improvement in economic conditions since 2017, which allowed companies to show stronger signs in solvency indicators.
In January, when the level of bankruptcy showed a 29.6 percent decline, there was a 22.5 percent drop in filings for judicial reorganization and a 28.6 percent decline in granted judicial recoveries. On the other hand, decreed bankruptcies increased by 14 percent.
The trend should remain favorable to the business sector, according to the report. “The financial situation of companies, together with the expected slight improvement in economic activity at the beginning of the year, point to a continuation of the favorable trend in the indicators for the coming months”.
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