Brazil sees surge in judicial recovery among small firms

A recent study by Monitor RGF BizDoc, using Receita Federal data, shows that micro, small and medium-sized companies in Brazil are increasingly using judicial recovery. Between Q1 2023 and Q2 2026, the rate of micro‑enterprises in recovery rose 133% (from 0.03 to 0.07 per 1,000 firms) and small firms rose 69% (from 0.52 to 0.87 per 1,000). Medium firms also grew 31% to 1.32 per 1,000. By the first half of 2026, 6,341 companies were in recovery, a 6.2% increase over the previous half‑year, although the pace of growth slowed compared with 2025.

At the same time, large corporations are moving toward extrajudicial recovery. Oncoclínicas, a Brazilian oncology services group, obtained court approval for an extrajudicial recovery plan that suspends creditor actions for 180 days and covers roughly R$ 5.1 billion of debt. The court also issued a 90‑day injunction preventing early‑termination clauses and restricting health‑plan operators from de‑credentialing or suspending services related to the company.