Brazil companies face rising judicial recovery amid economic pressure

Brazil is experiencing a significant wave of judicial recoveries among major companies. Recent filings include Tok&Stok, Habib’s, and Casas Bahia, which faces R$ 17.3 billion in obligations. Americanas executives expect to exit their own judicial recovery process by 2026 as they restructure their business model.

Data from RGF Consultoria indicates that only 17.5% of companies that entered judicial recovery since 2013 have successfully completed the process, while 10.7% have gone bankrupt. The number of companies in recovery has risen by 65.8% between mid-2023 and mid-2026, driven by high interest rates and restricted credit.

In a notable success, the energy company Light has officially exited judicial recovery following a court decree in Rio de Janeiro. The company fulfilled key obligations, including a R$ 1.5 billion capital increase and the conversion of R$ 2.2 billion in debt into shares. This exit is expected to restore Light’s access to credit and support its R$ 10 billion investment plan through 2030.