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São Paulo court approves GPA's R$4.6B debt recovery plan; shares jump over 10%
São Paulo's 3rd Bankruptcy Court homologated retailer GPA's R$4.568 billion extrajudicial debt recovery plan on Oct 7, with 57.49% creditor support; shares (PCAR3) jumped 10.68%.
Why it matters
Pão de Açúcar is one of São Paulo’s most iconic supermarket brands, and its parent GPA (also owner of Extra Mercado) has now had its debt restructuring approved by the courts, easing its short-term debt burden. The plan won support from creditors holding 57.49% of the affected debt, above the legal minimum; the company says stores operate normally and supplier relationships are unaffected.
Plan details
Judge Larissa Gaspar Tunala of São Paulo’s 3rd Bankruptcy Court signed the homologation order on Wednesday, Oct 7, approving GPA’s extrajudicial recovery plan. The plan restructures about R$4.568 billion in unsecured debt, with new debentures and a R$200 million capital raise; creditors may choose among three payment options.
After the restructuring, the average maturity of GPA’s debt stretches well beyond the current 2.1 years, with some new obligations maturing in 2036, sharply reducing short-term pressure. The plan was first announced in March and formally filed on May 5; court approval came seven months later.
Market reaction
GPA shares (PCAR3 on B3) jumped as much as 10.68% to R$3.73 during Oct 7 trading, though they are still down about 4.5% year to date.
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