GPA Denies Favoritism as 98% Approve Debt Restructuring
Brazilian retailer GPA (PCAR3) denies creditor favoritism in its R$ 4.5 billion debt plan, securing a 98% approval rate amid minor creditor disputes.
Brazilian retail giant GPA (PCAR3) has formally denied allegations of creditor favoritism and conflicts of interest regarding its R$ 4.5 billion extrajudicial recovery plan. The clarification, sent to the Brazilian Securities and Exchange Commission (CVM), follows six legal objections filed by minor creditors, including rival retailer Casas Bahia (BHIA3). Despite these disputes, GPA secured a massive 98% creditor participation rate, clearing a major hurdle for its financial reorganization.
The objections focused primarily on GPA’s relationship with major financial institutions, specifically Itaú Unibanco (ITUB4). Minor creditors claimed the plan favored large banks. However, GPA emphasized that the six objectors represent only a tiny fraction of the total debt. Furthermore, Brazil's Public Prosecutor's Office (Ministério Público) has already reviewed the operations and found no evidence of fraud or undue favoritism. Preliminary injunctions filed by the dissenting creditors have also been rejected by the courts.
According to GPA, approximately 98% of the affected creditors formally selected their payment options by the July 13 deadline. An overwhelming 88.4% of those creditors chose "Option A," which involves injecting new capital into the retailer. This option structures a new issuance of approximately R$ 2.6 billion, consisting of R$ 1.5 billion in debentures maturing between 2028 and 2031, alongside R$ 1.1 billion in instruments convertible into equity. The restructuring aims to reorganize R$ 4.5 billion in non-operational liabilities, providing the supermarket operator with vital long-term breathing room.
For global investors tracking B3 stocks and the broader Brazil stock market today, the high approval rate signals strong institutional backing for GPA's turnaround. The Ibovespa today remains highly sensitive to corporate debt restructurings in the retail sector. In recent trading, GPA's local shares (PCAR3) have faced high volatility, while major creditor Itaú Unibanco (ITUB4) traded down 1.39% at 41.96 BRL. Meanwhile, the benchmark index, IBOV, edged down slightly by 0.06% to 173,714.08 points.