On 1 July 2017, Decree-law 79/2017, of 30 June 2017 (“DL 79/2017”), entered into force. This piece of legislation amends, most notably, the Insolvency and Recovery of Companies Code and the legal framework of the Special Revitalization Procedure (“SRP”), which is now reserved only to companies.
Other noteworthy amendments introduced by DL 79/2017 are as follows:
— In addition to the written and signed statement evidencing that the necessary conditions for the company’s recovery are met, the company will now have to submit a statement no more than 30 days old, subscribed by a certified accountant or a statutory auditor (if the latter is required by law) evidencing that the company is not actually in a state of insolvency;
— The SRP is initiated by a declaration of intent of the company and of a creditor or creditors which hold at least 10 % of unsubordinated claims (although this limit may be reduced by the court) – this percentage cannot include creditors that are specially related to the company;
— The voting process has been substantially altered, presently including a stage in which the creditors may review the restructuring plan prior to voting;
— At the court’s initiative or at the request of the provisory court-appointed insolvency practitioner, SRPs filed by controlling companies or companies of the same group may be joined in the same proceedings;
DL 79/2017 also creates a new mechanism similar to the SRP for natural persons – the Special Process for a Settlement Agreement – which seeks the homologation (court approval) of a settlement agreement and not a recovery plan