Casas Bahia Has Filed for Court Protection Owing 17 Billion Reais. Banco do Brasil Is In for 2.9 Billion of It
Casas Bahia has filed for judicial recovery with R$17.3 billion of debt. Banco do Brasil is exposed for about R$2.9 billion of it. The post Casas Bahia Has Filed for Court Protection Owing 17 Billion Reais. Banco do Brasil Is In for 2.9 Billion of It appeared first on The Rio Times .
Banco do Brasil is considering a R$1 billion debtor-in-possession loan to help Casas Bahia during its restructuring process, which has resulted in a debt of around R$17.3 billion. The retailer filed for judicial recovery in São Paulo, seeking to restructure its debt, making it one of the largest crises in the company's history. Banco do Brasil and Bradesco are reportedly evaluating a DIP financing facility, which would inject new cash during the restructuring and typically ranks ahead of existing claims for repayment.
If the loan is approved, it would show the banks' confidence in the company's viability, as it would be a test of the extent of the retail credit cycle that has already been recognized.
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