[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN PORTUGAL] 77
(b) the time limit for contesting the list of recognized creditors has expired without any contestation having been filed, or, if a contestation has been filed, the contestation in question has already been decided, whether for lack of response to the contestation or by a court decision which may not be final; c) The amounts deposited to the order of the insolvent estate are equal to or greater than EUR 10,000.00 and their ownership is not disputed; d) The process is not in a condition to prepare the final distribution. Once these conditions are met, the insolvency administrator shall prepare and publish the partial distribution list, and the creditors and the creditors (if any) shall have 15 days to reply to it. At the end of this period, the process is concluded with the judge, who decides on the payments that he considers justified. III. STATUTORY RESTRUCTING, REHABILITATIONS AND REORGANISATIONS The PER (“ Processo Especial de Revitalização ”) is a special revitalisation proceeding for companies facing a situation of imminent insolvency or economic distress and is not to be used as a substitute for insolvency proceedings. The PER is initiated by a written request subscribed to by the debtor and creditors representing at least 10% of non-subordinated credits (or a lower percentage in certain limited cases), which includes the following: • A declaration by the company of its ability to recover; • A joint declaration of the debtor and the abovementioned percentage of creditors expressing the will to engage in negotiations; • A declaration by a certified accountant attesting that the company is not insolvent;
•
Auxiliary in insolvency proceedings (e.g., a list of creditors, pending lawsuits, documents required
shareholders, assets and employees; a description of the debtor’s activities; and annual accounts, management and audit reports and legal certification for the last three years); • A proposal of recovery plan, with a description of the company’s situation in terms of assets, financing and revenue cash flows, and • Introduced by the Law No. 9/2022, 11 th January, in order to ensure a more equitable treatment of creditors on whom the effective restructuring of companies will depend, companies other than micro, small and medium-sized enterprises will be required to present, with the respective request for submission to the PER, a proposal for the classification of creditors affected by the recovery plan in distinct categories, according to the nature of the respective credits, into guaranteed, privileged, common and subordinated creditors and, among these, reflecting the universe of creditors of the company according to the existence of sufficient common interests, namely: i. Workers, without distinction of the type of contract; ii. Shareholders; iii. Bank entities that have financed the company; iv. Suppliers of goods and service providers; v. Public creditors. Upon the receipt of said request, the judge appoints a provisory judicial administrator
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
Made with FlippingBook Online newsletter maker