Brazil's Americanas submits reorganization plan
Reuters
Published Mar 20, 2023 09:19PM ET
Updated Mar 21, 2023 07:35AM ET
SAO PAULO (Reuters) -Brazilian retailer Americanas SA has presented to a court its post-bankruptcy reorganization plan, it said late on Monday, marking potential progress to recovery after disclosing billions of dollars in accounting irregularities.
Americanas, which entered bankruptcy protection after disclosing accounting "inconsistencies" worth 20 billion reais ($3.78 billion), presented the first draft of a legal recovery plan to a court in Rio de Janeiro state.
Under the plan, the retailer's 'reference shareholders', the billionaire trio that founded 3G Capital, would inject 10 billion reais into the company through a capital increase, a measure Americanas had confirmed in early March.
Within 60 days of the capital increase, the retailer would hold a reverse auction to settle debts with unsecured and financial creditors who "opt to receive full settlement of all or part of their claims at a discount of not less than 70% of the claim amount," it said.
The firm also proposed a repurchase of unsecured credits, as well as the issuance of simple debentures, among other debt restructuring options.
Americanas will put up for sale assets including Hortifruti/Natural da Terra, Grupo Uni.co as well as its airplane, aiming to use at least 2 billion reais from the proceeds to reduce its remaining debt.
"With this the company intends to reduce its market debt, post-restructuring, to 4.9 billion reais," it said, far below the 42 billion reais previously acknowledged during the bankruptcy proceedings.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.