INSUBCONTINENT EXCLUSIVE:
The Brazilian agricultural sector experienced a significant uptick in companies seeking judicial recovery during the third quarter of 2024
This trend reflects broader economic challenges affecting various industries across the country.According to the RGF Judicial Recovery
Monitor, 264 agricultural companies were undergoing judicial recovery by the end of the third quarter, a 20.5% increase from the previous
The surge stems from falling commodity prices, rising production costs, and high debt levels among rural producers.The third quarter saw 39
new agricultural companies entering judicial recovery, more than double the 15 filings from the second quarter
During the same period, 18 companies exited the process.Five activities account for 75% of judicial recoveries in the agricultural sector:
soybean cultivation (80 companies), beef cattle raising (54), sugar cane cultivation (42), land preparation services (12), and corn
(Photo Internet reproduction)The trend extends beyond agriculture, affecting various sectors in Brazil
The total number of companies in judicial recovery reached 4,408 in the third quarter, a 4.4% increase from the previous quarter and the
highest level in 15 months.RGF partner Rodrigo Gallegos noted that the increase in judicial recovery filings reflects a short-term strategy
of debt renegotiation without addressing underlying structural issues
He emphasized the importance of combining debt renegotiation with improved revenue generation.The analysis suggests that judicial recovery
cases will likely continue to rise due to high interest rates and credit restrictions
Companies with substantial debt face challenges in meeting financial obligations amid scarce credit availability.Economic Turmoil Hits
47 new cases bringing the total to 297
Rio Grande do Sul followed with 35 new cases, reaching 396 companies
the complex economic landscape facing Brazilian businesses, highlighting the need for strategic planning and adaptability in challenging
