By Jeffrey T. Lewis
SAO PAULO–Americanas SA’s shares dropped 37% after the Brazilian retailer said it had won a court order protecting it from creditor requests for early repayment of debt.
Americanas’s shares reached 1.98 reais, the equivalent of 39 cents, and are down 90% over the past year through Friday’s close. Brazil’s benchmark Ibovespa stocks index was down 0.8% in early trading.
The company last week said it had discovered an accounting gap of about $3.9 billion related to financing for its suppliers. Americanas’s CEO and CFO both resigned from the company. The CEO, Sergio Rial, said the company would likely need a cash injection and would probably have to increase its debt.
Americanas said on Friday after the close of trading that a judge had granted its request for protection from creditors trying to invoke clauses in their contracts allowing the lenders to request early repayment of debt.
Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com
Source link
