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MGRA Advogados – key legislations enacted in March 2024

I. INTRODUCTION – KEY ASPECTS OF PORTUGUESE LAW – DEFINITION OF INSOLVENCY AND LEGAL FRAMEWORKInsolvency proceedings consist of a universal enforcement process, with the objective of satisfying creditors in the best possible way in an bankruptcy scenario, either by an insolvency plan based on the recovery of the company via the insolvency assets, or, when this is not possible, by liquidating the debtor’s assets and sharing its result among the creditors.Insolvency proceedings in Portugal are only triggered in the case of a debtor’s insolvency, which is defined, in general, as the inability of the debtor to fulfill its obligations as they fall due (cash flow criteria). Aside from this, and in the case of legal entities, the debtor is also considered to be in an insolvency situation when, according to accounting criteria, the liabilities of the debtor clearly exceed its assets (balance sheet criteria).Under Portuguese Law, the most relevant laws and statutory regimes that apply to the financial restructuring, reorganizations, liquidations, and insolvencies are the following: Insolvency and Recovery Code (“Código da Insolvência e da Recuperação de Empresas” – hereinafter “CIRE”), approved by the DecreeLaw No. 53/2004, dated 18.03.2004 and last amended at 11.09.2022 by the Law No. 9/2022, on … Read More