Welcome to Management in Focus, the monthly newsletter from Galeazzi & Associados. On the last Monday of each month, you'll receive exclusive analyses, key topics to watch, and insights from Galeazzi & Associados on what's driving the market and businesses. This aims to enhance your planning and decision-making with the expertise and perspectives of our professionals.

In the past month, the overall market felt the impact of new requests for judicial recovery, with the case of 123milhas standing out. The series of events added further pressure to the judicial recovery agenda in Brazil, which saw a 53% increase in the first half of 2023 compared to the same period last year, according to the Recovery Indicator and Bankruptcy by Serasa Experian. From January to June this year, 593 companies requested judicial recovery.

Initially, ticket packages and bookings were suspended by 123milhas. Desperation set in among customers, and it took only two days for the company to file for judicial recovery "with the aim of overcoming this moment and proposing a viable financial solution."

Almost a month later, the Court of Justice of Minas Gerais suspended the judicial action allowing the company's judicial recovery, following a request from Banco do Brasil, the company's largest creditor, dissatisfied with the planned recovery. Days later, Maxmilhas requested to be included in the process, claiming that the effects on the online tourism agency market were too strong after the announcement of 123milhas' restructuring. Once again, Banco do Brasil is the biggest creditor of this business and is likely to object to such a plan.

This episode follows other recovery requests made this year, such as those of Americanas, Petrópolis Group, Oi, and Light (in summary, companies from various sectors facing different consumer trends). What will happen next is still uncertain, with everyone waiting for the presentation of new restructuring plans approved by creditors. Like Galeazzi, it is part of our core business to monitor and assess the next steps and decisions to ensure security for entrepreneurs, clients, and the sustainability of the country itself.

Until next time!