BRAZIL · BUSINESS
Key Facts
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
- What is happening A Brasília court refused Casas Bahia’s request to move about 30.1 million reais (US$5.5 million) of court deposits out of BRB, a state-owned bank.
- Why it matters Courts are treating deposits as protected money tied to a case, while BRB’s role as a holder of court money is under wider dispute.
- The numbers The deposits total about 30.1 million reais (US$5.5 million at 5.49 reais per dollar). The ruling is dated Tuesday 27 October and became public on 3 November.
- Who is who Casas Bahia is a Brazilian furniture and appliance retailer in court-supervised restructuring. BRB is the bank controlled by the Federal District government, which includes Brasília.
- What to watch Casas Bahia has not said whether it will appeal, and it told the securities regulator it is weighing the release of money deposited in court.
- What it means for you Investors and suppliers exposed to Casas Bahia, whose shares trade in São Paulo as BHIA3, should note that cash held in court is hard to reach quickly.
A Brasília court has refused to let Brazil’s Casas Bahia move court-held money out of a state-owned bank. The retailer is in court-supervised restructuring and is looking for cash.
A Brasília court has refused to let Casas Bahia move about 30.1 million reais (US$5.5 million) of court deposits out of BRB. Desembargador Leonardo Roscoe Bessa, a judge of the Federal District court of justice, ruled on Tuesday 27 October.
The decision became public on 3 November. Casas Bahia, a retailer in court-supervised restructuring, had asked to transfer the money to other financial institutions.
Reais are converted here at the Central Bank of Brazil’s PTAX rate of 5.4935 per US dollar on 3 November. The Federal District’s court of justice is known as the TJDFT.
What the Court Decided
The judge found no proof of a concrete risk to the money that would justify moving it from BRB. He wrote that the choice of the bank holding court deposits belongs to the judiciary, not to the parties.
Judicial deposits follow different rules from ordinary bank investments. They stay tied to the case and are not part of the bank’s freely usable assets.
The judge also warned that allowing the move could invite similar requests and weaken BRB’s liquidity. He cited an order by Supreme Court Justice Luiz Fux on the effects of moving such deposits.
Why the Money Sits at BRB
The deposits belong to a case over ICMS, a Brazilian state sales tax, in which the Federal District government is a party. They secure the disputed tax credit.
The Federal District’s attorney-general’s office, known as the PGDF, argued against the request. Its lawyer, Marcos de Araújo Cavalcanti, said the file held no documents showing concrete risk to the deposited funds.
Under current court guidelines, new deposits in the Federal District go to Caixa Econômica Federal, a federal bank. Older deposits remain at BRB.
Casas Bahia’s Cash Squeeze
Casas Bahia filed for judicial recovery, Brazil’s court-supervised protection from creditors, on 16 August 2026. It told the securities regulator, the CVM, on 18 August that it was weighing tax deals and releasing money deposited in court.
Our earlier reports on the court accepting the case and the shareholder vote give the background. A separate report covers the labour settlement for fired staff.
The ruling comes amid a wider dispute over BRB’s role as a holder of court money. In August, Justice Fux ordered Bahia’s state court to keep its contract with BRB for 90 more days.
What It Means for US Readers
Casas Bahia is one of Brazil’s best-known retailers, and its shares trade in São Paulo as BHIA3. Investors and suppliers exposed to the company should note that cash held in court deposits cannot be reached quickly.
The judge’s reasoning shows courts resisting moves that could drain a bank holding large court deposits. That matters for anyone judging BRB’s liquidity.
More is on the Brazil hub, with guides to who runs the economy and who holds power. The court sits in the capital, covered on the Brasília city page.
What Is Not Known
We could not open the written decision, so the reasoning is as described in Brazilian media and by the Federal District’s lawyers. The case number and the exact ruling date in the court’s own record were not checked.
Casas Bahia has not said publicly why it wanted the money moved, or whether it will appeal. BRB has not commented on the ruling in the reports we saw.
It is not known how much else Casas Bahia holds in court deposits at BRB. The ruling covers only the deposits in this case.
Frequently Asked Questions
What did the court decide about Casas Bahia and BRB?
It refused Casas Bahia’s request to move about 30.1 million reais (US$5.5 million) of court deposits out of BRB. The judge found no proof of a concrete risk to the money.
Why is Casas Bahia’s money at BRB?
The deposits secure a disputed ICMS state-tax credit in a case involving the Federal District government. Deposits made before the current guidelines stay at BRB.
Can Casas Bahia appeal?
Casas Bahia has not said whether it will appeal. No comment from the company on the ruling was reported.
Is Casas Bahia in bankruptcy?
It filed for judicial recovery, Brazil’s court-supervised protection from creditors, on 16 August 2026. That process is closer to Chapter 11 in the United States than to liquidation.
What is BRB?
BRB is a bank controlled by the Federal District government, which includes Brasília. Under current court guidelines, new deposits there go to Caixa Econômica Federal.
Sources: Federal District Court of Justice (TJDFT), deposits and court guidelines; Grupo Casas Bahia, market notice to the CVM of 18 August 2026 on Brazil securities regulator (CVM) filings; Central Bank of Brazil, PTAX exchange rate (5.4935 reais per US dollar, 3 November 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
Brazil runoff, Sunday, October 25: Brazil runoff start time and results schedule. Latest: Brazil runoff polls, Flávio 51%, Lula 49%.