August 1, 2006
Airline Varig has struggled with bankruptcy.In June 2005, Brazil's new bankruptcy law went into effect, giving troubled companies fresh hope for recovery. While critics say the law increases costs for companies going through a restructuring and question whether it provides enough security to potential investors, the legislation substantially increases the chances that creditors will recover at least some unpaid debts. Likewise, the law provides more options to companies with temporary financial problems, offering a true possibility to exit bankruptcy protection and continue to operate. "The new law is without a doubt a step forward. Before this law, Brazil didn't really have bankru
Brazil's new bankruptcy law offers hope for indebted companies trying to stay viable, and assurance for their creditors, too.