Hat in hand: 1 year ago in Latin Trade.

HAT IN HAND It took 11 years for Brazil's politicians to approve a new bankruptcy law, just one year longer than it actually takes Brazilian companies to complete the country's cumbersome bankruptcy process, in Mexico and Argentina, by comparison, it takes two years to liquidate a failed firm. The bill was introduced in 1993, updating law on books since 1945. The previous law liquidated companies by dismantling them, piecemeal, in order to quickly pay workers and outstanding taxes. Little is left over to pay lenders. When banks do get some cash back, it is only after nearly a decade of legal work. The new law, approved in July and expected to be in force by January, focuses on saving troubled companies and protecting bankers. Creditors now follow salaried employees. Lenders who provide financing during reorganization get preference over creditors who lent money when the company was solvent.