Heloísa Nogueira and Thamara Belinatti
In late June, Casa do Pão de Queijo—a favorite among airport coffee shops—filed for judicial reorganization with the 1st Regional Court for Corporate and Arbitration-Related Disputes (covering the 4th and 10th Judicial Administrative Regions), facing debts exceeding R$50 million.
One of the company's most urgent requests concerned the early activation of the mechanism known as the "stay period"—a 180-day window (renewable for another 180 days) mandated by Law 11.101/05, during which lawsuits and enforcement actions against the debtor company are suspended.
The origin of the stay period traces back to United States bankruptcy legislation, specifically to Chapter 11 of the Bankruptcy Code (Bankruptcy Code). In the U.S. context, the stay period—known as the automatic stay—is triggered automatically when a company files for reorganization. This mechanism protects the debtor from lawsuits and enforcement actions, creating a stable environment for negotiating with creditors and drafting a restructuring plan.
This instrument is one of the greatest benefits of judicial reorganization. Given that Casa do Pão de Queijo has accumulated various debts stemming from the crisis caused by the COVID-19 pandemic—with some being demanded daily through lawsuits filed against the group—this period provides the company with breathing room to reorganize and, subsequently, at the appropriate time, settle payments with all its creditors.
The reorganization request filed by the company was received in July by the Specialized Court in the Judicial District of Campinas, presided over by Judge José Guilherme Di Rienzo Marrey; the request was granted, and a Judicial Administrator was appointed. Thus, in the case of Casa do Pão de Queijo, the early application of this mechanism could be decisive for the success of its recovery. However, it is crucial that the use of the "stay period" be well-regulated and supervised to prevent abuse and ensure that both companies and creditors are treated fairly and equitably.
