Casas Bahia has filed for restructuring of approximately 17.3 billion reais in debt
The Brazilian retail chain Casas Bahia has filed a petition with a court in São Paulo seeking judicial restructuring of its debt, which totals approximately 17.3 billion Brazilian reais. The company is also requesting a 180-day suspension of debt enforcement proceedings.
According to The Rio Times, Banco do Brasil is listed among the creditors with claims totaling approximately 2.99 billion reais, a figure the media typically rounds down to 2.9 billion reais. This makes the bank one of the retailer’s largest financial creditors.
Casas Bahia informed the securities regulator that it is discussing financing for the company during the restructuring and other measures. The final terms of a potential loan, its duration, and the counterparties have not yet been determined. At the same time, market reports indicated that Banco do Brasil and Bradesco are considering providing approximately 1 billion reais in so-called DIP financing—a new loan to support business operations during judicial restructuring.
For more breaking news, follow the UA.News Telegram channel.
Judicial restructuring in Brazil involves the company negotiating with creditors under court supervision. First, the court must accept the petition for consideration, after which the creditors will be officially added to the list, and the company will be required to submit a recovery plan. Subsequently, this plan will be reviewed by the creditors.
Casas Bahia, which sells furniture and home appliances, previously reported a loss of 10.1 billion reais and the closure of approximately 300 stores. The company stated its intention to focus on more profitable sales channels and product categories, reduce debt and financing costs, and develop its marketplace.
