Large companies drive wave of judicial recovery in the country – 05/12/2023 – Market

The wave of requests for judicial recovery, which began to gain strength in November 2022 and gained prominence in January with the Americanas case, had another boost.

The new monthly data that will be released by Serasa Experian point to 93 applications registered in the country in April, an increase of 43% compared to the same month last year.
In the accumulated of 2023, there are already more than 380 cases.

In volume, micro and small companies lead the requests for judicial recovery in April, with 64 requests, followed by medium-sized businesses (18) and large ones (11). But the advance in the accumulated result for this year has been driven by large companies, which had almost 60% growth in the number of orders, compared to 53% for micro and small companies and 6% for medium-sized companies.

In Serasa’s classification, large companies are those that earn more than R$ 50 million per year.
“What worries is that the big ones are growing more. This shows that the situation of economic stagnation and high interest rates is not hitting just the little ones. The participation of the big ones in this statistic has increased. Before, it was not the number that grew the most” , says Luiz Rabi, an economist at Serasa.

By sectors, industry has a 67% increase in requests for judicial recovery and the primary sector, which includes agribusiness, reached 68%.

In the case of agro, there were 37 companies from January to April this year, compared to 22 in the same period of 2022.
Light’s case will be included in the May indicator.

The trend should still prevail in the coming months, because it is linked to default numbers, which continue to rise, according to Rabi’s forecasts.

“Delinquency will only start to fall when the economy grows again, interest rates fall again and inflation is lower. We already have some progress, but it is still very early to be able to reverse, and these insolvency numbers enter curve different from the current one”, says Rabi.

Bankruptcy filings are also on the rise, with 91 filings in April, up 12% from the same month last year.