In a report which was made public in May 2023, the IMF reviewed its 2023 GDP growth predictions for Portugal at 2.6%. This is just after it had predicted a growth rate of 1% in April (in itself, a leap from the projections made in October 2022 which set growth at 0.7%). According to public sources, these predictions are based on an analysis of the country's economic performance in 2022 and the first quarter of 2023.

R&I | Mar 2022 | www.vda.pt

CORPORATE RESTRUCTURING

Practical Guide Prepare the Future : The essentials of restructuring and insolvency mechanisms

A comparative analysis of the changes arising from Law no. 9/2022 of 11 January

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VdA EXPERTISE

Index

Extrajudicial Company Recovery Scheme | RERE Special Revitalisation Procedure | PER Extraordinary Company Viability Procedure | PEVE Insolvency Proceedings

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Are there any mechanisms of debt restructuring in case my company is facing a difficult economic situation?

Under Decree 43/2020, some COVID-19 specific mechanisms were adopted to mitigate the impact of the outbreak in the Country, including:

Last Friday, October 16, the Proposed Law no. 53/XIV was approved. In addition to providing for exceptional and temporary changes to the existing rules on insolvency proceedings, the Special Revitalization Proceedings ("PER"), the Special Proceedings for Payment Agreements ("PEAP") and the Extrajudicial Company Recovery Scheme ("RERE"), this diploma creates the Extraordinary Company Enablement Procedure ("PEVE").

Law no. 7/2018, of 2 March 2018 was published last Friday, establishing a new legal framework for conversion of credits into capital.

Approved as part of the Programa Capitalizar1 (Capitalize Program) and effective as of 3 March, the Act affords companies and their creditors an extrajudicial recovery and restructuring avenue to act swiftly with regard to the capitalization of companies in a weak financial position but that are economically viable.

I. Scope

Introduction

Are there any mechanisms of debt restructuring in case my company is facing a difficult economic situation?

Law no 8/2018, of 2 March 2018 was published last Friday, establishing the Regime Extrajudicial de Recuperação de Empresas (Extrajudicial Framework for Business Recovery) ("RERE"), which is effective as of 3 March 2018.

The RERE, which must be read together with the other instruments making up Programa Capitalizar, enacts a material change of the national business recovery framework.