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[BUSINESS] · Brazil · 14 sources

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Casas Bahia secures 180-day suspension of debt collections

The Brazilian retailer Casas Bahia has received a judicial decision to suspend all collections and legal actions against the company and its subsidiaries for 180 days. This protection, known as a 'stay period', was granted by Judge Tainá Maria Leonardo de Oliveira to prevent a 'run on creditors' from compromising the company's ability to reorganize its R$ 17.3 billion debt.

The court order also mandates that BTG Pactual restore the retailer's access to its accounts and statements within 24 hours. Additionally, payment networks including Cielo, Getnet, and Redecard must release the retailer's receivables within 48 hours. To evaluate the company's financial health, a judicial expert report must be submitted within 30 days.

Following the news of the court's decision to protect the company's assets, Casas Bahia shares (BHIA3) saw significant volatility, at one point surging by as much as 65% in a single session.

Separately, the company is conducting ongoing online auctions of electronics and appliances through the Kwara platform. The company clarified that these auctions, which feature products from reverse logistics, are routine operations and are not related to the judicial reorganization process.

Entities

BTG Pactual · Casas Bahia · Cielo · Getnet · Kwara · São Paulo · Tainá Maria Leonardo de Oliveira

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