Probability of the Debtor Obtaining Financing During Judicial Recovery

There are several reasons that lead a company and/or entrepreneur to undergo a judicial recovery process. What they all have in common, however, is the lack of liquidity, or rather, the lack of financial means to fulfill the necessary obligations for the daily operation of the company, such as worker salaries, operational costs, suppliers of inputs/raw materials and services, and investments, etc. In this regard, credit is an essential variable to promote the growth and survival of the company in times of crisis, to protect the core of economic activity, the source of services, in line with the fundamental principle of the Institute of Judicial Recovery, namely, the preservation of the company. In this context, and within the hypothetical realm, the present article has the general objective of analyzing the situation of a company undergoing judicial recovery, identifying the mechanism and the possibility for the debtor company to obtain a loan, and citing the legal framework for enabling and materializing the obtaining of financing. As for the methodological approach adopted for the development of this research, it is characterized as qualitative, employing two types of methodological procedures, namely, bibliographic review and documentary research. The study reaffirms that the choice to secure financing for companies undergoing judicial recovery is entirely justifiable as it concerns a higher good; in other words, it favors the preservation of the employment relationships of workers who operate within companies under the mentioned situation, thus establishing a conducive environment for the preservation of the corporate organization, also upholding its social function and continuing to stimulate the activity carried out by companies undergoing judicial recovery.en