The economic impacts of the new Coronavirus pandemic (SARS-CoV-2 – Covid 19), propagation although with consequences whose exact extent is not yet possible to anticipate, predict a serious global economic crisis, with implications for the national and multinational business.
The Mozambican legal system has on it´s legislative range Decree-Law No. 1/2013 of 4 July, which approves the legal regime of Insolvency and the Recovery of Business Entrepreneurs, the same document aims to regulate the legal regime of Insolvency and Commercial of Entrepreneurs Recovery, making it possible to overcome the situation of impossibility of fulfilling obligations overdue by commercial entrepreneurs and other entities in order to allow the maintenance of the source of employment of workers and the interests of creditors, thus promoting the stimulation and preservation of economic activity and it’s social function as set out in it’s article one.
This regime applies with the necessary adaptations to Associations, Foundations, Civil Societies, Cooperatives and Persons.
The deferring of the judicial recovery request suspends the course of the statute of limitations and all actions and executions against the debtor, including those of the private creditors of the solidary partner and the tax enforcement proceedings. According to numbers 1 and 8 of article 6 of the Decree under analysis.
The article 47 premise that the judicial recovery reorganization is to make it possible to overcome the situation in which the debtor’s overdue obligations cannot be fulfilled. To this end, the debtor may request the recovery to be done if at the time of the request he provides his activities regularly for longer than 12 months and proves that:
• Do not be insolvent and if so, have your declarations be extinguished by a final judgment;
• Haven’t been granted judicial recovery for less than 2 years;
• Haven´t been convicted or does not have, as administrator or dominant partner, a person convicted of any of the crimes provided for in articles 167 to 173.
It´s consecrated as means of recovery by article 49 of Decree-Law No. 1/2013 of 4 July, as follows:
• The granting of special terms and conditions for payment of overdue or expired obligations;
• The fusion, merger or transformation or transfer of shares, respecting the rights of the partners, under
the terms of the current legislation;
• Partial sale of assets;
• The payment assets or novation of debts of the liabilities, with or without constitution of own or third
• New Shareholder aceptance;
• he wage reduction, hours’ compensation and working hours’ reduction by collective agreement or con
• A redução salarial, compensação de horários e redução da jornada, mediante acordo ou convenção
• The wage reduction, hours’ compensation and working hours’ reduction by collective agreement or
• New share bonds;
Accept the request for judicial recovery, the recovery plan must be submitted within 90 days from the date of publication.
It is important to mention that the debtor who intends to resort to the recovery regime, can do so extrajudicial, as long as he fulfills the same requirements for the judicial recovery mentioned above.
Accepted the request for judicial recovery, the recovery plan must be submitted within 90 days from the date of publication.
It is important to refer if the debtor want intends the recovery regime, can do it extrajudicially, as long as he fulfills the same requirements for the judicial recovery mentioned above.