Have you heard of the Special Revitalization Process (PER)? This is a way to protect your company from insolvency, which would involve its closure and the dismissal of workers. 

The PER (Special Recovery Plan) is presented as an alternative to insolvency, and is a plan accessible to all companies, provided they meet certain circumstances. 

In this article from Advogados em Braga, learn more about what PER is, what the advantages of this process are, and how it works. 

What is the Special Revitalization Process?

O Special Revitalisation Process It is a legal process that allows a company to negotiate with its creditors in order to implement a business revitalization plan. The goal is for the company to be able to operate normally and continue its business activities. 

Who can apply for PER?

The PER (Special Revitalization Plan) is a process open to all companies, provided they meet certain criteria. Those eligible for the Special Revitalization Plan are companies that are in a difficult situation or facing imminent insolvency, but that still meet the conditions for revitalization. 

How does the special revitalization process work?

The purpose of the Special Revitalization Process is to regenerate companies facing difficult financial situations, preventing their insolvency.

The Special Revitalization Process begins with a request in court, followed by a restructuring plan outlining payment plans, and finally, this plan is submitted for approval through a vote by the creditors. 

What are the advantages of PER?

The Special Revitalization Process offers several advantages for those involved, such as: 

• No one is declared insolvent;
• It's a quick process;
• All other processes are suspended during this period;
• The right of veto exists, meaning it may not be approved against the debtor's wishes.

What are the disadvantages of PER?

Regarding disadvantages, the Special Revitalization Process is no exception, and therefore presents some, such as:

• It does not cover companies that are not insolvent or that are already insolvent. insolvency;
• Creditors cannot file new lawsuits for the coercive debt collection.

What is the difference between PER and Insolvency?

The Special Revitalization Process presents itself as an alternative to insolvency. But what are the main differences?

The main difference is that in the case of the Special Revitalization Process, the company is on the verge of insolvency, but is not yet in that situation, whereas in insolvency the company is already in that state. 

In both processes, the seizures All operations related to the company are suspended while the legal proceedings unfold. This allows companies to continue operating. 

What types of companies can use the PER program?

Any company can apply for PER. However, it is important to note that there are specific situations that companies must meet to be eligible for PER. Only companies that are in imminent insolvency or financial difficulties, but that have the conditions to improve their situation, are eligible. 

How to Start a Special Revitalization Process?

To initiate a Special Revitalization Process, a lawyer must contact the court. The following steps should be followed:

• Next, the lawyer must submit a request signed by the company and by creditors connected to the company;
• A written and signed statement, issued no more than 30 days prior by a certified accountant, when an audit is requested;
• A proposed recovery plan;
• A document describing the company's tax, marital, and other legal matters. 

What are the deadlines and legal procedures in the PER (Special Recovery Plan)?

The PER (Special Recovery Plan) is considered a fast judicial process due to the short waiting time for a resolution. Regarding deadlines, negotiations for the PER must be completed within two months. This deadline can be extended once every month. 

What are the costs associated with the special revitalization process?

The costs associated with the Special Revitalization Process are essentially the court fees, since it is advisable to hire a lawyer to handle the situation, making this process more affordable compared to other legal proceedings. 

What role does a lawyer play in monitoring the PER (Special Recovery Plan)?

A lawyer is crucial in a Special Revitalization Process situation, as they are the right person to accompany and advise their clients. A lawyer has the sufficient and appropriate knowledge to provide the necessary advice and assistance with the bureaucratic and legal aspects of the case. 

For more information, contact Lawyers in Braga. At Advogados em Braga you have at your disposal the best professionals, specialized in various areas of law, thus being able to provide the best service. 

Conclusion 

Unlike insolvency, which is intended for companies already in the insolvency process, the Special Revitalization Process is a way to save companies that are at risk of insolvency or that do not have the financial means to pay their debts, but that have room for improvement. 

This process offers several advantages to those who hire it, such as the speed of the process, or the fact that the company's other existing processes are suspended while the PER (Special Recovery Plan) is underway. 

For proper support and to ensure your rights are properly protected, the presence of a lawyer is essential.