How do conciliations and mediations work in judicial recovery?

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According to art. 20-B, conciliations and mediations may be prior to or incidental to judicial recovery proceedings. The Law presents an exemplary list of cases in which these means of conflict resolution may occur. Paragraph 1 of the same article provides that, in the case provided for in item IV, companies in difficulty that meet the legal requirements to file for judicial recovery will be allowed to obtain urgent precautionary relief, under the terms of arts. 305 et seq. of the CPC, so that executions proposed against them may be suspended for a period of up to 60 days.

In order to attempt to reach an agreement with their creditors, in a mediation or conciliation proceeding already instituted before the Judicial Center for Conflict Resolution and Citizenship (Cejusc) of the competent sms gateway taiwan court or specialized chamber, observing, where applicable, arts. 16 and 17 also of the CPC. If there is a request for judicial or extrajudicial recovery, the suspension period provided for in § 1 will be deducted from the suspension period provided for in art. 6.

This suspension of executions, even if brief, allows the company in difficulty to negotiate its debts before filing and obtaining the processing of the judicial recovery, mitigating the asphyxiation of its cash flow. It is another instrument to help overcome the business crisis.