Insights | Kobre & Kim — Disputes and Investigations

Economic volatility across Latin America is driving a new wave of restructurings that expose Chinese investors to complex, cross-border disputes affecting recoveries.
Because many companies operate through offshore structures and hold assets across jurisdictions, effective recovery strategies often require coordinated insolvency proceedings, while navigating growing geopolitical and regulatory sensitivities in strategic sectors, to protect value and maximize recoveries.

Kobre & Kim Co-Founder Michael Kim joined host Renato Sapiro on the Brazilian podcast Direito de Resposta.
He discussed the firm’s unconventional beginnings and shared candid insights on cross-border strategy, accurately addressing client needs, and how lawyers can stay valuable in a rapidly evolving market.

As part of its continued growth in Latin America, Kobre & Kim has appointed Renata Ramalhosa as Regional Managing Director, based in São Paulo.
Renata will expand and enhance relationships with local law firms, strategic advisors, key regional stakeholders, and clients outside of Brazil with Brazilian interests.
Renata has held leadership roles in both the private and public sectors.

The December 2024 Chapter 15 filing of Brazilian cement group Intercement is the latest in a series of insolvency cases involving Brazilian companies with cross-border implications.
Navigating the multijurisdictional aspects of distressed situations could prove both demanding and rewarding for international creditors and investors.
Since a recent bankruptcy law was enacted, several tools have become available in Brazil for international creditors looking to improve their leverage.

Many Brazilian and Latin American companies that borrow in US dollars are facing a growing mountain of debt.
As international creditors eye a shrinking pool of capital available for repayment, US dollar noteholders may be left at the back of the line relative to onshore creditors.
However, there are a number of options at USD noteholders' disposal that could improve their position and increases their chances of recovery.

A wave of cross-border financial distress and insolvencies is rocking Brazilian companies – Brazilian airline GOL filed for Chapter 11 in the U.S. in January 2024.
Although international creditors have historically faced a Brazilian insolvency landscape that has created many practical impediments, things are changing.
A new Brazilian bankruptcy law, if combined with a multijurisdictional approach touching the U.S. and offshore, can give creditors additional leverage toward a favorable recovery.

Brazil is seeking more investment from China, with almost half of China’s investments in South America being in Brazil.
However, the recent wave of insolvencies in Brazil could threaten these investments, particularly if fraud is uncovered, leaving investors to navigate the complex Brazilian insolvency landscape.
By undertaking a more assertive, multijurisdictional approach, combined with new insolvency tools in Brazil, investors can seek to gain the upper hand.

The Americanas fraud has led a wave of insolvencies in Brazil, shaking the market.
This wave of financial distress has ensnared international creditors into the slow-moving Brazilian insolvency landscape.
However, new developments in Brazil – combined with an assertive cross-border strategy – can help creditors gain the upper hand and reach a quicker resolution.

The tumultuous power transfer in Brazil has sparked investigations into the new administration’s political opponents.
This is an example of a larger global trend where regime change may result in politically motivated investigations, threatening a politically exposed person’s liberty, reputation and assets.
Our team walks through proactive steps those at risk can take to protect themselves.

Victims of large-scale and sophisticated fraud in Brazil may struggle to recover their assets by only using tools available in the domestic legal system.
However, a growing interest in fighting cross-border crime by U.S. authorities, together with the power of tools in the U.S., provide victims with a potentially better path to success.
Our cross-border team explains what strategies victims can deploy to achieve results.

Brazil’s looming election could lead to a sharp shift in government and potentially, as part of a global trend, result in politically motivated investigations against rivals and their businesses.
These investigations can involve misconstrued allegations or undermined due process, and can threaten even overseas assets.
Our International Private Client team explains how politically exposed individuals can take proactive steps to protect their assets, liberty and reputation.