The eminent and traditional legal practice of Pinheiro Guimarães in the fields of banking and finance law, together with its robust experience in dispute resolution, led to the development of a consistent and solid practice in the areas of insolvency, debt restructuring, and special situations.
This practice area demonstrates the commitment of the office to developing legal solutions that are the most adequate and secure to meet the interests of its clients.
Over the years, the excellence of Pinheiro Guimarães in these areas of practice has been repeatedly acknowledged by the most important national and foreign publications.
Insolvency (Bankruptcy; Judicial and Extrajudicial Reorganization)
Over the past few decades, Pinheiro Guimarães has been actively engaged in the most relevant and complex cases of judicial reorganization, extrajudicial reorganization, and bankruptcy, arising in Brazil. In particular, the firm has represented financial institutions, large enterprises representing the most diverse sectors of the economy, shareholders, investors, ad hoc creditors’ committees, and other groups of organized creditors. The firm participated prominently in the first and most challenging cases to occur following the publication of Brazil’s Bankruptcy Law (in 2005) and the legislation that modified that law (in 2020).
One of the differentials that sets Pinheiro Guimarães apart in its insolvency practice is the support and integration of the partners from other practice groups of the firm. With the strong support from these other practice groups working in tandem with the insolvency group, the firm is able to render complete and multidisciplinary advice to its clients, with a strategic vision designed to optimize debt restructuring as well as to maximize the recovery of past-due credits.
In the same manner, the firm represents clients engaged in cross-border insolvency cases. In many of those cases, the firm provides information and counseling in respect of Brazilian legislation regarding insolvency to clients in other jurisdictions.
The firm’s partners practicing in the insolvency group actively participate in specific national and international associations for professionals in the fields of bankruptcy and turnarounds. In this manner, those partners are able to engage in a continuous exchange of experiences, which, in turn, permits the firm to remain updated in matters most significant for the practice area.
Debt Restructuring
Based on its broad and varied transactional experience formed over more than 100 years of legal practice, Pinheiro Guimarães has consolidated itself as one of the leading references in Brazil for restructuring transactions and debt renegotiations, including both domestic and cross-border transactions.
The firm advises creditors, debtors and other agents in the market – such as trustees, collateral agents and administrative agents – in structuring, negotiating, and carrying out complex restructurings. The firm’s services cover all matters from consensual renegotiations to multifaceted transactions involving multiple jurisdictions, classes of creditors, and financial instruments.
One of the major engagements of Pinheiro Guimarães in debt restructuring goes back to the decade of the 1970s. The firm was retained as sole Brazilian counsel to the Bank Creditors Committee in the restructuring of Brazil’s sovereign debt. Pinheiro Guimarães served in this capacity for some twenty years until the matter was finally resolved with the issuance of instruments referred to as ” Brady Bonds” by the Federative Republic of Brazil in the early 1990s.
Recognized as one of the most traditional law firms in the country for debt restructuring, the firm has always had the good fortune of relying upon a highly experienced practice group. The firm has advocated for clients in transactions at all levels of complexity and in all phases of the renegotiation process, including both domestic and international syndicated loans, restructurings involving the issuance of securities in the capital markets, liability management transactions, exchange offerings, and debt-equity conversions.
The integrated structure of Pinheiro Guimarães permits the firm to render legal services of a multidisciplinary nature, coordinated by a senior team of lawyers, bringing together professionals from the various practice areas of the firm. This approach makes possible the development of legal solutions customized and oriented towards the creation and preservation of value in each debt renegotiation.
Special Situations
The “special situations” practice area of Pinheiro Guimarães is dedicated to providing legal services in complex and innovative transactions. These transactions may involve different legal, financial, or operational risks; different situations of economic or financial stress; lack of liquidity; relevant contingencies; or innovative contractual and corporate structures.
Backed by its strong reputation in the areas of structured finance, debt restructuring, and judicial and extrajudicial reorganization, the firm advises investors, financiers, investment funds, managers, companies, and other agents in the market, in the origination, structuring, and negotiation of projects and transactions, and in carrying out tailor-made legal solutions. Those solutions frequently involve credit instruments, capital, collateral, corporate reorganizations, and strategies for mitigating risks.
The firm’s practice includes advocating on behalf of clients in hybrid and cross-border transactions involving performing and nonperforming loans, public and private credit, recovering credits owed by the government (precatórios), and credits and assets tied to court cases and to judicial or extrajudicial restructurings. In addition, Pinheiro Guimarães counsels clients on opportunities for investing in companies or in assets in distress situation, by means of assignment and acquisition of credits, securitizations, structured financings, rescue financing, debtor-in-possession financing (DIP financing), convertible instruments and quasi equities, acquisition of stressed assets, isolated productive entities, and equity in corporations, corporate reorganizations and transactions that demand integration between the legal practice areas of corporate, contractual, regulatory, tributary, insolvency and capital markets.
