Judicial recovery requests in Brazil reached 136 incidences in May, a drop of 22.7% compared to the year-ago period, according to credit research firm Serasa Experian.
Micro and small companies had 84 requests for judicial recoveries in the month, followed by medium-sized firms with 30 and large companies with 22 requests.
In January to May, however, applications for judicial recoveries rose 13.9% year over year to hit 654 instances. The decline in May's requests was not enough to reverse the increase recorded in the year so far, as slowing economic growth poses challenges especially for micro and small businesses, according to Serasa Experian economists.
Judicial recoveries are part of Brazil's bankruptcy law where debtors must present creditors with a recovery plan to pay back debt.
Meanwhile, there were 151 bankruptcy filings in May, falling 22.2% compared to the same month in 2017. Compared with the linked month, bankruptcy requests increased 24.8%.
