Bankruptcy Petitions Drop 42 Percent in February, Says Credit Analyst Boa Vista
RIO DE JANEIRO, BRAZIL – Bankruptcy petitions dropped 42 percent in February compared to January, according to national data from Boa Vista. Compared to February 2019, the drop was 77.9 percent, while in 12 months there was a 10.5 percent reduction in these requests.
By contrast, there was an increase in petitions for judicial reorganization (26.6 percent), judicial reorganizations granted (56.4 percent) and bankruptcies decreed (43.9 percent). However, when compared to the same month last year, there were decreases of 23.7, 30.1 and 11.8 percent, respectively.
The accumulated figures over 12 months also dropped in petitions for judicial reorganization (5.5 percent), in judicial reorganizations (9.7 percent) and in bankruptcies (13.8 percent).
According to Boa Vista, this retraction in 12 months is linked to the improvement in the economic environment since 2017, which enabled companies to show stronger signs in solvency indicators.
“In general, the performance of companies’ financial position coupled with the expected slight improvement in economic activity early this year points to the continuation of this trend in the indicators for the coming months”.
Source: InfoMoney
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