Substantive consolidation in the upcoming Brazilian Bankruptcy Law reform

Partner Fabiana Solano and associate Thiago Dias Costa at Felsberg Advogados in Saõ Paulo discuss new rules on substantive consolidation of debtors’ assets in the draft bankruptcy bill pending before Brazil’s Congress. While the new rules offer a clear improvement to the current regime, the authors argue the terms under which they are proposed to apply may result in different interpretations and ongoing uncertainty.