Debt Collection
- Structured Financial Transactions
The Firm´s lawyers are specialized in negotiation of litigious situations, whether or not formally commenced, as well as in assistance to take the fitting judicial measures to collect debts, in particular those resulting from structured financial transactions, both in and out of court (e.g., negotiation and extrajudicial execution of guarantees).
“Structured transactions” means projects for financing that include issuance of securities (real estate credit notes, real estate receivable certificates, bank credit notes, agribusiness credit letters and receivable certificates, etc.) for trading in over-the-counter markets or securities exchanges. This listing for trading is a necessary condition for acquisition by professional investors (such as investment and pension funds).
These transactions often rely on a package of guarantees that are subject to extrajudicial enforcement, such as fiduciary assignment of real estate or receivables or deposits of cash flows in escrow accounts, among other mechanisms.
These transactions typically involve the participation of intermediaries like custodians, fiduciary agents, asset managers, consultants and other professional entrusted with monitoring the debt service and maintenance of the guarantees established in advance. These people assume professional commitments, with fiduciary duties to borrowers, making them subject to oversight by regulators (CVM and/or Central Bank).
A thorough understanding of the transaction and its guarantees, as well as the role and responsibilities of these professionals, is fundamental to render effective services to recover credits in case of default.
Therefore, it is necessary to allocate a multidisciplinary team, formed by lawyers from the litigation and corporate/capital market areas, to assure efficient recovery of credits.