February 5, 2023

Americanas has stopped paying interest on LAMEA7 bonds to investors after court action

Americana ([AMER3]On Tuesday (17th) I stopped paying interest on the 17th issue of bonds. The payment was expected to take place on Monday (16), according to the physical fact signed by CEO Joao Guerra.

The paper in question contains the symbol LAMEA7, according to information available on the website of the Brazilian Association of Financial Entities and Capital Markets (Anbima). These papers are linked to CDI (fixed income reference rate) and the issuance took place in July 2022. At that time, the funding was R$2 billion.

In the document, the company informed that this action is the result of the decision of the Fourth Business Court of the Court of Justice of Rio de Janeiro (TJRJ). Judge Paolo Acid, Friday (13), issued an urgent precautionary measure at Americana’s request regarding the early maturity of debts.

The decision gave the company a breath to face an unprecedented crisis after prof An accounting gap of R$20 billion, which could reach R$40 billion. Additionally, following the decision, TJRJ gave Americanas 30 consecutive days to file for injunctive recovery.

According to the document, in light of what appears in the court’s decision, the possibility of enforcing the interest stipulated in Clause 4.2.2 of the Deed of the 17th Issue of the Company’s bonds is “suspended” by the company.

Credit risk rating deterioration

After the discovery of “accounting discrepancies” in the company’s balance sheet last week, the credit risk rating (evaluation) from the retailer by branches got a lot worse.

Continue after the announcement

Yesterday (16th), Moody’s downgraded the credit rating of Americana (Amer 3) from “Ba2” to “Caa3” and then put a file evaluation Under review for further reduction, following the movement of its peers Fitch and Standard & Poor’s last Friday.

According to Moody’s, bonds rated “Caa” are speculative with a low rating and are subject to very high credit risk. The Ba rating also represents liabilities that are considered speculative but are subject to significant credit risk.

Read more:
Moody’s downgraded Americana (AMER3) to “Caa3” following a creditor protection order

The decision, according to Moody’s, followed Friday’s announcement of positive rulings from the court.

“Moody’s believes that in the absence of an agreement with creditors to protect liquidity, it is likely that the company will file for bankruptcy within 30 days of the announcement,” it said in a statement.

Last Friday (13th), rating agency Fitch Ratings downgraded Americanas (Amer 3) for “CC” of “BB” on the global scale and “CC (bra)” of “AA+ (bra)” on the national scale. The downgrade is reflected in the ratings of the company’s bonds and bonds.

Continue after the announcement