Background information

The Assembly of the Republic approved the Law 75/2020 on 25 November that establishes an extraordinary process of businesses' bailout. This process will be in force between 26 November and 31 December 2020. This extraordinary procedures were defined in the context of the economic effects of the COVID-19 pandemic.

Content of measure

The Law 75/2020 of 25 November:

1. Establishes an exceptional and temporary regime for extending the deadline for completion negotiations initiated with a view to approving a recovery plan or payment agreement, as well as granting a deadline for adapting the proposed insolvency plan, in the context of COVID-19;
2. Extends the privilege provided for in paragraph 2 of article 17-H of the Insolvency and Recovery Code (CIRE), approved in annex to Decree-Law 53/2004, of March 18, to the partners, shareholders or any other specially related persons of the company that finance their activity during the Special Revitalization Process (PER);
3. Provides for the application of the Extrajudicial Regime for the Recovery of Companies (RERE), approved by Law 8/2018, of 2 March, to companies that are in a current insolvency situation due to the COVID-19 disease pandemic;
4. Creates an extraordinary process for making companies affected by the economic crisis viable due to the COVID-19 disease pandemic;
5. Establishes the obligation to carry out partial apportionments in all pending insolvency where there is a settlement product deposited in an amount above €10,000;
6. It provides for the assignment of priority in the processing of applications for the release of collateral or guarantees provided in the context of insolvency proceedings, special revitalization proceedings or special process for payment agreement.

Use of measure

Unknown.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

Unknown.

Views and reactions

Unknown.

Sources

• 27 November 2020: Lei n.º 75/2020 (dre.pt)