I make a habit of striking up conversations with taxi and rideshare drivers on practically every ride I take, especially when I'm travelling. I always believe that, between one traffic light and the next, you can learn a little about the city, its people and, often, the country itself.
This Saturday, however, on my way to Congonhas Airport after three intense days of work in São Paulo, trying to make it in time for the last Gol flight to Rio de Janeiro, I hopped into the next taxi in line, parked in front of the hotel where I was staying. I'll admit that, for once, I wasn't really in the mood to talk.
Mr. Antônio, a 61-year-old taxi driver, apparently wasn't having his best day either. Besides driving in a rather eventful way — honking at anyone who dared cross his path — he asked me, within the first few minutes, whether I was some kind of “authority.”
A little taken aback by the bluntness of the question, I obviously said no. I was absolutely no kind of authority. In fact, I didn't even risk mentioning I was a lawyer, despite wearing the profession's almost-official uniform: suit, tie, and the look of someone who had spent the day discussing problems that weren't his own.
From there, it was nearly thirty minutes of scathing criticism aimed at every kind of politician imaginable. Left or right, government or opposition — as far as Mr. Antônio was concerned, they were all “no good.” The one curious exception was Paulo Maluf, who, in his own particular reading of Brazilian history, was supposedly the only one who “stole, but got things done.”
I'm fairly convinced Mr. Antônio hadn't read the interview former Finance Minister Armínio Fraga gave to Veja magazine, published on June 24, 2026. Had he read it, the ride might have ended before we reached the airport — on my initiative.
In the interview, the economist states that “the outlook is disastrous” and adds that he does not rule out a recession in 2027. He therefore recommends that companies and individuals be very careful with debt, preserve cash, and avoid taking on new loans.
In my daily contact with business-owner clients, however, I have noticed that for many, the recession decided to move up its arrival: it landed as early as 2026, settled in without asking permission and, apparently, has no plans to check out anytime soon.
It's no coincidence that the first quarter of this year saw a significant number of judicial reorganisation filings, not to mention bankruptcy petitions and out-of-court restructuring proceedings. Behind every statistic there is a company, jobs, suppliers, families and business owners trying to understand exactly when a one-off problem turned into a threat to the survival of the business.
Brazilian business owners are, to a greater or lesser extent, living through yet another period of crisis. Some say that being an entrepreneur in Brazil means learning to live with crisis permanently. The difference is that some crises walk in through the front door, while others creep in quietly, while the business owner believes he'll be able to sort everything out next month.
Having followed hundreds of struggling companies, I've noticed that one of the first signs usually appears when taxes stop being paid. Next, the business owner starts falling behind on bank loans, renegotiating debts with suppliers, delaying rent payments, and using personal funds to keep the operation running. By the time they realise it, the company's problem has already invaded their home, their sleep, and their own health.
Moments like these aren't easy to get through.
I myself spent my teenage years and early adulthood watching the companies my father co-owned go under. On another occasion, I'll go into more detail about how that experience deeply shaped my professional path. For now, suffice it to say I learned very early that a company in crisis isn't just a negative number on a spreadsheet. It's a life's project starting to collapse in front of the very person who built it.
Perhaps that's why I insist on looking at every struggling business owner not just as a client, but as someone who needs to regain the ability to make decisions. Our job is to help them understand the scope of the problem, set priorities, protect what can still be saved, and build legally viable paths for the business to continue.
There won't always be a simple solution. In some cases, it will be necessary to renegotiate debts, review contracts, reorganise the company, seek asset-protection measures, or resort to the legal tools available, such as judicial or out-of-court reorganisation. In every case, though, it is essential to act before the crisis starts making decisions in the business owner's place.
By the end of the ride, I made it to Congonhas in time. Mr. Antônio probably went on with his day honking at cars, at politicians, at the economy and, perhaps, at fate itself.
I boarded my flight thinking that, deep down, he was right about one thing: there is plenty to be outraged about.
But when it comes to a company in crisis, outrage isn't enough. You need to recognise the problem, preserve cash, seek guidance, and make decisions — preferably before the crisis takes the wheel, speeds through the yellow light, and leaves you with no choice but to buckle up.
Read more at: https://veja.abril.com.br/paginas-amarelas/arminio-fraga-o-quadro-edesastroso/
Ricardo Petereit
Founding Partner of Petereit Advogados Associados
