Americanas: admission of fraud should not change trading – 06/15/2023 – Market

The admission of fraud on Americanas’ balance sheets by the company this week should not lead to changes in negotiations with creditor banks around the R$ 42.5 billion debt.

According to sources accompanying the negotiations, the new information that became public in recent days does not have a direct impact on the conversations between the parties and on the planned schedule.

According to people familiar with the conversations, the amounts referring to the now admitted fraud remain around R$ 20 billion, and, therefore, negotiations between banks and creditors to collect the debt and, at the same time, allow the company continues with its operations, should not be affected.

In the statement released by the retailer on Tuesday (13), Americanas revealed that there was fraud in the alleged contracting of bonuses with the industry – a common practice in retail, when manufacturers give discounts for large orders, which the document pointed out as “contracts of cooperative advertising allowance and similar instruments (VPC)”.

Through this instrument, the manufacturer’s name appeared in campaigns by retailers, who therefore receive a discount on the purchase of products. But, in the case of Americanas, these discounts were never actually granted.

“These releases [de VPC]made during a significant period, reached, in preliminary and unaudited numbers, the balance of BRL 21.7 billion on September 30, 2022”, says the report.

According to negotiators accompanying the conversations, in a meeting between creditor banks and company executives after the disclosure of the new information, the objective was to better understand the architected structure, and not to change the amounts that were being negotiated.

A professional from one of the banks accompanying the conversations says that the general terms of the agreement being negotiated remain the same as those recently reported, with a contribution of R$ 12 billion from the trio of Brazilian billionaires Jorge Paulo Lemann, Marcel Telles and Beto Sicupira, owners of 3G private equity firm.

In a relevant fact released in early April, the company states that the most recent proposal presented to financial creditors indicates a short-term capital increase, in cash, in the amount of R$ 10 billion, accompanied by two additional capital increases of up to R$ 1 billion each, on future dates to be agreed.

According to the source consulted, the “substantial” credit loss to be assumed by the banks, and the deadline for paying the debts, is a point still to be concluded to allow the conclusion of the negotiations.

The expectation of those involved in the talks is that the terms of the agreement are finalized in the coming weeks.

A formal conclusion, however, should take longer, requiring compliance with procedures such as approval of the plan by the trustee and at the meeting of creditors. The republication of the balance sheet by Americana is also a previous step to be completed so that it is possible to close the process.

In conversation with journalists between the end of April and the beginning of May to comment on the results of the first quarter, the presidents of the big banks stated that they expected that the agreement between the parties would be finalized in mid-June.

Americanas informed through a note that “it has been holding talks with its creditors and remains committed to maintaining constructive negotiations in search of a solution that allows the continuity of its activities. As soon as an agreement is fully negotiated with the creditors, the Company will disclose to the market all your content.”