Casas Bahia makes an extrajudicial agreement to recover debt of R$4.1 billion

Casas Bahia, one of the largest retail chains in Brazil, announced on Sunday (28) a pre-agreed agreement with its main creditors for an extrajudicial recovery of its debts, which total an impressive R$4.1 billion. The agreement, which already has the consent of creditors holding 54.5% of the debts, aims to restructure the company's financial situation and guarantee its long-term sustainability.

According to the terms of the agreement, the renegotiated debts include the 6th, 7th, 8th and 9th series of debentures, which previously had an average cost of CDI + 2.7% and a term of 22 months. Now, with the renegotiation, the cost was reduced to CDI + 1.2%, with a term extended to 72 months. This measure aims to alleviate the company's financial pressure, allowing for a more stable cash flow in the coming years.

In recent statements, Casas Bahia CEO Renato Franklin addressed concerns about recurring interest payments, highlighting the significant numbers involved. According to him, the company had disbursements of R$1.5 billion this year and expects around R$1 billion in the coming years. The CEO emphasized the need for a different approach, stating that the current situation is not sustainable, he emphasized that by reducing these payments, the company gains financial flexibility and can be better prepared to face volatility in the market, in addition to capitalizing on emerging opportunities. This strategic change aims to strengthen the company's position and maximize future growth potential.

_{Company renegotiates debts with better financial conditions (Photo: reproduction/Disclosure/Pixabay/Stevepb)}

Agreement with creditors

Furthermore, as part of the agreement, the main creditor banks will have the opportunity to convert 63% of the amounts owed into shares in the retailer, which further strengthens the partnership between the company and its strategic creditors. The perimeter of the operation is restricted and only includes unsecured financial debts, such as debentures and CCBs issued with banks. Bradesco and Banco do Brasil, which have a significant share of these debts, representing 54.5% of the total issues covered in the plan, will be fundamental parts of the restructuring process.

Interest and amortization

The agreement provides for a grace period of 24 months for interest payments and 30 months for payment of principal, providing essential financial relief for Casas Bahia.

In short, this initiative aims to strengthen Casas Bahia's financial position, ensuring its stability and preparing it to face future challenges in the retail market, including the long-awaited Black Friday.

Featured Photo: Casas Bahia Store (Reproduction/Disclosure/Casas Bahia)