BRK and Porto Cred file for bankruptcy: a guide for investors and borrowers
The Central Bank recently announced that the financial institutions BRK and Porto Cred had been declared bankrupt. In view of this scenario, in order to avoid any doubts about the impacts on credit agreements or investments linked to these companies, we have prepared this newsletter to guide you through the next steps and the rights involved.
Context and General Implications
1. The bankruptcy of financial institutions in Brazil follows a strict regulatory process coordinated by the Central Bank and the Creditors' Committee. In the case of BRK and Porto Cred:
The Central Bank will appoint a judicial administrator to conduct the liquidation of assets and the payment of creditors;
Investor clients will have priority in the credit queue according to the law (Law 11.101/2005);
Borrowers must maintain payments according to the original contracts until further notice (non-compliance may lead to default). - Profile-specific guidelines
2. For Investors or Depositors:
Recovery of resources: The bankruptcy process prioritizes labor credits and individual depositors/investors;
Legal action: It is possible to file for bankruptcy proceedings to guarantee your rights;
Timeframe: The process can be lengthy - we recommend documenting all proof of investment immediately.
3. For customers with loans or financing:
Continuity of the contract: Credits can be transferred to another financial institution without unilaterally changing the original conditions (respecting the Consumer Defense Code);
Caution: Do not sign new documents or agreements without prior legal analysis; - Protection: Abusive charges or undue pressure should be reported to PROCON and challenged in court.
Having said that, we are available to help you with: (i) Individualized analysis of contracts and positioning in the bankruptcy process; (ii) Judicial representation to recover amounts invested or defense in irregular collections; (iii) Direct negotiation with the trustee or institutions that take over the credits; and (iv) Regulatory monitoring to ensure compliance with Central Bank rules.
