A escolha entre recuperação judicial ou extrajudicial em processos de reestruturação de dívida no Brasil

Abstract

The new Business Recovery Act, (2005), allowed the choice between court and out-of-court decision in debt restructuring processes. The objective of this research is to analyze the main characteristics of the companies that have entered into a restructuring and what are the impacts of the choice of the process in an eventual decree of bankruptcy of the company. This study also aims to identify the determinants that lead companies to choose between the court or out-of-court processes considering financial statement information frow years prior to the recovery request. For this, probit models were estimated with data from financial statements of companies that opted for one of the processes as of 2005. Studies on corporate debt restructuring processes have not yet been extensively explored in Brazil. The results suggest that certain company characteristics such as Size, Perfomance, Cost of Debt, and the fact that the company requested the recovery in times of economic crisis are related to the probability of choosing one of the processes