The financial constraints caused by the coronavirus has affected the world’s economy and its outlook is still unknown and gloomy. Companies from all industries worldwide have been taking all sorts of measures to mitigate losses, preserve cash flow and, ultimately, survive. Just like other companies around the globe, the coronavirus has pushed many struggling Brazilian companies over the edge and into bankruptcy.
The International Monetary Fund predicts the Brazilian GDP will fall by 5 percent in 2020 and, have a slim 1.5-percent recovery next year. The consequences are enormous or significant Due to this huge contraction for Brazil, it is estimated that around 2,500 companies in the country may be forced to turn to the courts to avoid bankruptcy. If the numbers are confirmed, that would represent an increase of 40%compared to the record of 1,800 requests in 2016, when the country’s GDP dropped 3.5 %.