The first version of Americanas’ restructuring plan, presented to the courts on Monday (20), proposes to pay creditors in March 2043 only 20% of the value of the debt, i.e., a discount of 80%, if they have lawsuits against the company.
The retailer expects a reduction of its debt from almost R$43 billion (US$8.2 billion) to R$4.9 billion (US$930 million).
The creditors must vote on and approve the proposal in an assembly yet to be defined.
“General payment method: the remaining balances will be reduced by 80% and paid in only one installment, in March 2043, under the terms of the Judicial Recovery Plan,” says the material fact disclosed by the company this Tuesday morning (21).
The payment proposal presented is composed of a contribution of R$10 billion in new resources, equivalent conversion of debt into capital in up to R$10 billion, sale of assets (such as Hortifruti Natural da Terra, the stake in the UniCo Group, owner of Imaginarium, Puket and Love Brands brands; and the company’s aircraft) and restructuring of the remaining debt between repurchase and rescheduling.
In the case of creditor banks, Americanas foresees the repurchase of debt by the company, through reverse auction and direct purchase, besides the conversion of financial debts, part in capital and part in renegotiated debts.
“The company will use up to R$2 billion of the resources from the disposal of assets to maximize the reduction of its remaining debt, being the first R$1 billion raised destined to the repurchase of debt at the market and the balance of resources raised, limited to R$1 billion, to repurchase subordinated debt. With this, the company intends to reduce its market debt, post-restructuring, to R$4.9 billion,” cites the material fact.
LAWSUITS
The 80% discount is offered to creditors who do not commit to withdrawing from lawsuits against the company.
Currently, the main banks in the country are fighting legal battles to recover funds lent to Americanas.
To suppliers, Americanas proposes to fully pay creditors with credits up to R$12,000 in up to 30 days counted from the plan’s homologation date.
This same deadline is given to creditors suppliers with credits higher than R$12,000 and that accept to receive R$12,000 in exchange for the total settlement of their credits.
Those who have credit above R$12,000 and reject receiving only this value will be paid in 48 equal monthly installments after applying a discount of 50%.
Creditors of classes 1 and 4 (labor and micro and small companies) have already been excluded from the judicial reorganization according to a previous decision, pending an answer to an appeal filed by some creditors to pay the residual balance, Americanas informed.
REVERSE AUCTION
Creditor banks can only participate in the reverse auction if they withdraw their lawsuits against the company.
The proposal indicates a “discount of not less than 70%” of the credit.
Another option the retailer offers, besides the reverse auction, is to participate in a capital increase of R$10 billion, a credit buyback of up to R$2.3 billion with a 60% discount over face value, and an issue of R$5.9 billion in simple debentures.
There is also the option of restructuring subordinated debt, in which the company will issue debentures convertible into shares.
DISCUSSIONS WITH CREDITORS
“The recovery plan presented is consistent and already counts, at the start, with R$1 billion from the reference shareholders, through the DIP financing already done”, said Camille Faria, Americanas’ CFO, in a press release.
The executive added that she follows “in constructive discussions” with each group of creditors to reach a common denominator.
“The proposal of capitalization with new resources and debt conversion from major creditor banks, the payment of collaborating creditors without a haircut, and an average recovery above 50% for financial creditors complement the plan and give it the characteristic of being one of the most balanced in the market already at the start,” said the CFO.
Starting this Tuesday, all creditors will be able to send notices, requests, applications, and other communications regarding the plan, said the retailer, which entered into receivership proceedings on January 19 after revealing a R$20 billion hole in its accounts, an occurrence described by creditor banks as a “fraud.”
With information from Bloomberg