Brazil’s Americanas faces more debt, asset sales as it restructures
SAO PAULO (Reuters) -Brazilian retailer Americanas SA has presented to a court its post-bankruptcy reorganization plan, a local newspaper reported on Monday, marking potential progress to recovery after disclosing billions of dollars in accounting irregularities.
Sources with knowledge of the situation, however, told Reuters that the company shoulders a higher debt load than previously disclosed. The sources declined to be named as they are not authorized to speak to the media.
Americanas presented the first draft of a legal recovery plan to a court in Rio de Janeiro state, O Globo newspaper reported.
In January, the company entered bankruptcy protection after disclosing accounting “inconsistencies” worth 20 billion reais ($3.78 billion).
The company said in early March it had offered a 10 billion reais capital injection to its creditors that will come from top shareholders.
According to O Globo, the retailer will also put up for sale assets including Hortifruti/Natural da Terra, Uni.co as well as its stake in the Vem Conveniencia joint venture.
Sources close to the matter said the company holds debts of more than 50 billion reais, which exceeds the 42 billion reais previously acknowledged during the bankruptcy proceedings.
Additional liabilities have been discovered since Americanas filed for bankruptcy, the sources said, adding that a document detailing the company’s financial situation will be presented in court later on Monday.
The company said it has no information regarding the delivery of the restructuring plan, while the court said it has not received any plan from the retailer.
(Reporting by Rodrigo Viga Gaier, Carolina Pulice and Andre Romani;Editing by Chris Reese, David Gregorio and Sonali Paul)