Americanas SA., the Brazilian retail company backed by billionaire Jorge Paulo Lemann, filed for bankruptcy protection in a Rio de Janeiro courtciting liabilities of some 43 billion reais (US$8.2 billion).
The request comes just days after the January 11 “iinconsistencies” accountants by 20 billion reais, triggering a sell-off of its stocks and bonds. It also led creditors to block deposits and ask for early repayment of debts, leaving the company with almost no cash for basic operations.
The company had previously said that he could apply for protection for bankruptcy this Thursday. CNN Brasil and the G1 website previously reported on the move.
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A Rio de Janeiro court had granted Americanas protection from creditors on January 13, which also prohibited creditors from freezing or seizing assets. Banks rushed to file motions to annul the decision, and days later Banco BTG Pactual SA was allowed to block 1,200 million reais to offset part of the company’s debtaccelerating the crisis.
Although Americanas said it is still evaluating the extent of the accounting flaws, his disclosures to investors so far imply that he misreported the figures related to the financing of the debts with the suppliers, at the same time that it erroneously deducted from its liabilities the interest paid to the lenders.
This practice had two effects: artificially increase earnings and reduce stated liabilities. The company is still assessing how far back the problems go, so the adjustments that have already doubled the liability are not yet final.
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Americanas is one of the oldest and most emblematic retailers in Brazil. LThe company has some 3,600 stores in more than 900 cities, more than 5,000 suppliers and 40,000 employees. Lemann, Marcel Telles and Carlos Alberto Sicupira have been key shareholders for 40 years.
Also at stake is the reputation of the three billionaires at 3G Capital Inc., who own about 31% of the company.. The trio held control of Americanas for decades until their stake was diluted in a 2021 restructuring.. Sicupira and Lemann’s son, Paulo Alberto, sit on Americanas’ board of directors, representing shareholders.
The president of the firm, Eduardo Saggioro Garciais a partner and CEO of LTS Investments, the family office of Lemann, Sicupira and Telles.
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The 3G trio told Americanas’ board of directors their intention to continue supporting the company, according to a regulatory document. In negotiations on Friday offered creditors a capital injection of 6,000 million reais, an amount that was considered too low, according to people familiar with the matter. Creditors asked for more than 10 billion reais, the people said, and negotiations have stalled.
On January 16, Americanas hired Rothschild & Co. as his adviser in the renegotiation of the debt.
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