Judicial reorganization

Judicial reorganization is a legal process that helps a company facing financial difficulties improve its situation while continuing operations. It involves restructuring its debts, assets, and business practices under court supervision, often through a court-approved plan. This process aims to give the company a chance to recover and pay creditors over time, rather than going bankrupt or liquidating entirely. It provides a structured, legal framework for negotiations between the company and its creditors, balancing the company's need to stay afloat with creditors’ interests, ultimately striving to preserve jobs and economic value.