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With the problems created by the pandemic crisis, the number of distressed companies is expected to increase and therefore market agents expect recovery mechanisms to be calibrated for this exceptional situation. Speaking to Jornal Económico, Catarina Limpo Serra, CCA's Managing Associate of the Litigation and Arbitration Department, comments on the main obstacles that exist for the recovery processes of companies and what are the expectations regarding the evolution of the number of insolvencies and companies in recovery, as a result of the pandemic.
"The fatalistic culture that exists among economic operators, faced with a scenario of recovery of their company, is, in my eyes, the main conditioner (...) we must promote a culture of learning from mistakes, of humility in the face of failure and of courage in the face of adversity to take tough action that can save businesses. The recovery must be seen as an opportunity", says Catarina.
Regarding the effects of the pandemic crisis and the inevitable increase in the number of companies in recovery, Catarina Limpo Serra explains that the extraordinary measures approved by the Portuguese State have allowed companies to sustain their activity for a certain time and to reinvent themselves. However, she stresses that "it is important that companies modernize quickly, seek to maximize cash flow, cut costs and renegotiate debts with creditors, otherwise there is an inevitable bankruptcy scenario for many businesses that have not been able to adapt and modernize to this new era".
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- Jornal Económico