Souza Cescon Barrieu & Flesch Advogados has expanded its restructuring and insolvency practice with the hire of Fábio Rosas. Rosas joins the firm as partner from TozziniFreire Advogados and focuses his practice on insolvency, restructuring and litigation.

This hire comes in the wake of an economic crisis in Brazil which has led to a significant increase in restructuring and insolvency transactions and proceedings, and thus a demand for lawyers with such expertise. In an interview with IFLR1000, Rosas discussed some of the complexities that arise in restructuring and insolvency cases, particularly when companies in the same group “have cross-guarantees on their agreements”.

“There are discussions on what would be the legal requirements, or if the same group could file a single reorganisation request when it is in court; whether they could present a reorganisation plan with the same provisions, same structure of reorganization, as a proposal to the creditors, if the courts would accept that and how the creditor’s interests also would be affected in this environment,” Rosas explained. “We have the general law that would be applied, but the questions are not expressly and easily answered by the bankruptcy legislation.”

Rosas also referenced challenges that might come up in cases involving international companies or groups, especially those who have issued bonds in more than one jurisdiction. “The question is how the creditors, the companies and the creditors’ interests would be considered by a single proceeding in a single structural restructuring plan when it is filed in court in Brazil.”