Read this Friday’s edition of the FolhaMercado newsletter (17) – 02/17/2023 – Market

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No agreement

Nothing done. Americanas and representatives of the retailer did not reach an agreement with the banks, the company’s biggest creditors, in a meeting this Thursday (16).

What’s stuck: the company’s negotiators signaled that the trio of billionaires, reference shareholders, would be willing to take about BRL 7 billion pocket to put in the company.

• The offer generated dissatisfaction among the banks because it represented little progress in relation to what had been offered in the days following the outbreak of the scandal, when billionaires signaled a contribution of BRL 6 billion.

• Creditor financial institutions concentrate BRL 19.5 billion of Americanas’ R$43 billion in debt. They, who are sure that there was fraud in the company, want the capital injection of the former controllers to reach a level close to BRL 15 billion.

In numbers: in addition to the contribution of R$ 7 billion, the company’s proposal also talks about a debt repurchase of BRL 12 billion and the conversion of financial debts from BRL 18 billion, part in capital and part in subordinated debt.

• This was also not pleasing, because a proposal to repurchase the liabilities would depend on an agreement with the company’s debenture holders, and the subordinated debt portion is in last place on the list of payment priorities in the event of insolvency.

What if there is no agreement? The company has until March 20 to present its recovery plan to the court.

• If it is not accepted by the creditors, the debt holders can present an alternative plan, which will undergo a new vote in the meeting.

• If this plan is further rejected by most creditors, the company will go bankrupt – a solution that is not good for anyone, including financial institutions.

More about the case:

STF Minister Alexandre de Moraes suspended the decision that gave Bradesco access to Americanas board of directors’ emails to produce evidence of fraud.

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Tesla recall

Tesla will have to recall 362 thousand vehicles in the US for a remote upgrade to its autonomous driving software.

• In reaction to the announcement by NHTSA, the main American automotive regulator, the automaker’s shares fell 5.7%, burning $38 billion in market value.

• Elon Musk, CEO of the automaker, complained on Twitter about the term. “Calling a software update remotely a ‘recall’ is totally wrong,” said the billionaire.

Understand: regulators said Tesla’s software allows the vehicle to “exceed speed limits or travel through intersections in an illegal or unpredictable manner, [o que] increases the risk of an accident”.

• The software called Full Self-Driving Beta is only available to drivers who have agreed to pay $15k to have it in your vehicle.

• Because it is more sophisticated and able to travel on urban roads, it is considered an evolution of the Autopilot system, which drives, accelerates and brakes the car alone – and is investigated for allegedly having caused fatal accidents.

Tesla said it is not aware of any injuries or deaths that could be related to the recall issue. She claims that drivers should keep their hand on the steering wheel even if autonomous driving models are engaged.

Agreement: the recall came a day after the automaker announced an agreement with the US government to enable at least 7,500 charging points for its electric cars also for vehicles from other manufacturers.

• Tesla chargers today only allow connection to their own cars, but the change enables the company to receive government subsidies, while President Joe Biden advances his promise to have 500 thousand charging stations by 2030.

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take a break

• To read: “Masters of Scale: The Big Ideas That Turned Small Businesses into Global Successes” (Sextante, trans. Mayumi Aibe, R$59.90, 304 pages, R$34.99 ebook).

Reid Hoffman, one of the most important names in Silicon Valley, co-founder of LinkedIn and initial investor in companies such as Facebook and AirBnb, brings together in a book released this month in Brazil most of the interviews he conducted with technology entrepreneurs in his podcast “Masters of Scale”.

In the 70 conversations gathered in the book with executives from major companies such as Nike, Starbucks, Netflix and Slack, Hoffman tries to draw lessons from how small businesses gained scale and became global successes.

Also worth reading: Americanas billionaire bedside book is much more than default on suppliers.

beyond the economy

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