CNJ RECOMMENDS STANDARDIZING REPORTS IN JUDICIAL RECOVERY PROCESSES

Law No. 11,101 / 2005 establishes, among others, the duty of the judicial administrator to present various reports to the competent court. Among these, stand out in the judicial recovery, reports on the debtor’s activities and the execution of the recovery plan (art. 22, II, “c” and “d”). In bankruptcy, reports on the causes and circumstances that led to bankruptcy (art. 22, III, “e”), the administration account specifying income and expenses (art. 22, III, “p”) and final report with indication of assets, liabilities, payments and responsibilities (art. 155).

Recommendation No. 72/2020, published in August 2020, sought to fill the gap regarding formal requirements to guide the preparation and presentation of these reports by the judicial administrator. In this sense, it aimed to establish minimum standardization aimed at guaranteeing the effectiveness of jurisdictional provision, encouraging the reproduction of best practices and improving the management of business recovery and bankruptcy processes.

CNJ’s proposal is centered on four reports and a questionnaire, with models available in the annexes:

Administrative Phase Report: must be submitted after the verification of the credits carried out from the debtor’s books and documents and from those presented by the creditors (art. 7, Law nº 11.101 / 2005). Its content is formed by the synthesis of the analyzes made for the preparation of the public notice, including: list of creditors who presented divergences or credit qualifications; values ​​of credits indicated by the recoveree and creditors and final values ​​found by the administrator; succinct reasoning for the rejection or acceptance of each request.
Debtor’s Monthly Activity Report: models are suggested regarding the initial and monthly reports, in common, information regarding the staff, analysis of accounting data and financial information (assets and liabilities), evolution of the income statement (billing, liquidity , revenue, costs), due diligence, payment control and events of the month.

Report of Procedural Proceedings: filed petitions (date, location in the file, identification of the petitioner and the application), manifestations in relation to such petitions, which is pending appreciation by the judge and compliance by the notary or secretariat.
Report of Procedural Incidents: basic information about each incident filed (date of distribution, identification of the creditor, summary of manifestations) and the procedural stage in which it is.
Model questionnaire: data associated with the size of the company, passive litigation consortium, tax deposit, decree of bankruptcy, disregard of legal personality, extension of the effects of bankruptcy, payment of costs, time elapsing between specific procedural events, extinction of obligations, among others.

In addition, an important aspect is the guidance for judicial administrators to create a website for communication with creditors, providing access to copies of the main procedural documents, Administrative Phase Report, Monthly Reports of the debtor’s Activities, list of creditors and other pertinent information.

Finally, it should be made clear that the Recommendation is not binding. It intends, in effect, to provide minimum guidelines for proactive performance by judicial administrators and to encourage the continuous improvement of the techniques and procedures adopted in the performance of their duties, in order to contribute to transparency and speed in this type of process.

By: Wilson Sales Belchior