Casas Bahia seeks R$ 200M financing as prosecutors weigh debenture conversion

The São Paulo Public Prosecutor's Office (MPSP) has issued a favorable opinion to suspend the conversion of Casas Bahia Group debentures into shares during its ongoing judicial recovery process. The request, made by shareholder Rafael Ferri and the Minoritários S.A. association, concerns 37.9 million units of the 2nd series of the 11th issuance. The MPSP argues that under Law 11.101/2005, these credits should be subject to the judicial recovery rules, as they were issued in December 2025, prior to the company's August 2026 filing.

Separately, Casas Bahia is in advanced negotiations with Itaú Unibanco for R$ 200 million in debtor-in-possession (DIP) financing. While the company initially sought R$ 1 billion, this smaller tranche is intended to provide immediate liquidity to replenish merchandise stocks during the restructuring. The transaction remains subject to court approval in São Paulo.

Casas Bahia filed for judicial recovery in August to renegotiate R$ 17.3 billion in debt following a net loss of R$ 10.1 billion in the second quarter of 2026. The restructuring plan includes the closure of 298 stores.