Coronavirus: Extraordinary business viability process

A range of business support mechanisms have been introduced to face the crisis caused by the COVID-19 pandemic. Among them, the recent Law 75/2020 of 27 November has created a series of measures in the field of restructuring and insolvency procedures. The stand-out among these new procedures is the Extraordinary Business Viability Process (Processo Extraordinário de Viabilização de Empresas referred to here by it Portuguese initials, “PEVE”).

The PEVE is intended to lead to court approval of a debt restructuring agreement established out of court between the company and its creditors representing at least the majorities provided for in the Special Revitalisation Procedure.

One of the main virtues of the PEVE is that it promotes both financing and self-financing for the business, especially by means of loans from its shareholders, to achieve true viability.

The PEVE may only be used once. When it comes to an end, the company cannot use this procedure again.