Brazil to Change Bankruptcy Law

The Brazilian government plans to change the bankruptcy law to help indebted firms emerge faster from creditor protection, Finance Minister Henrique Meirelles said. The changes would reduce the average length of bankruptcy protection to two years, compared to between seven and eight years currently, he said in an interview with the O Estado de S. Paulo newspaper, Reuters reported. Bankers and lawyers expect bankruptcies to set a record in 2017, with tight credit and the lingering recession forcing a growing number of large Brazilian companies to seek protection from creditors. The bill, which will be submitted to Congress in June, would make it easier for companies under creditor protection to maintain operations and borrow funds, according to the article.