Embattled retailer Americanas wants creditors to swallow huge losses

After admitting to BRL 43 billion (USD 8.2 billion) in debt and filing for bankruptcy protection in January, retail and e-commerce giant Americanas on Monday unveiled a recovery plan that includes a multi-billion capital injection from the company’s trio of reference shareholders, as well as asset sales, and debt-to-equity conversions. The plan imposes losses of between 60 to 80 percent to unsecured creditors.

Jorge Paulo Lemann, Marcel Herrmann Telles, and Carlos Alberto Sicupira, who are among the richest people in Latin America, will inject BRL 10 billion into the company — not exactly the BRL 15 billion creditor banks had hoped for, but more than the BRL 7 billion they initially proposed in February. 

In an announcement to the market, Americanas promised to settle its labor debts — totaling nearly BRL 200 million — within 30 days of the plan’s approval by its 16,300 creditors. 

Rio de Janeiro’s top state court recently suspended a ruling that prioritized labor liabilities and debts to small and medium-sized companies, in response to a lawsuit by big banks. The court said only a creditors’ meeting could decide who gets paid first.

Americanas has pledged to settle debts with suppliers of BRL 12,000 or more within a month, but only if they accept BRL 12,000 in exchange for the full payment of their debt. Suppliers with credits higher than BRL 12,000 are expected to receive payment in 48 monthly installments, with a 50 percent...