The Sao Paulo bankruptcy court homologated Grupo Pao de Acucar's extrajudicial recovery plan covering 4.568 billion reais of unsecured debt, backed by creditors holding 57.49 percent of the claims.
A Sao Paulo court on Wednesday approved Grupo Pao de Acucar's extrajudicial recovery plan, CNN Brasil reported. The company, which owns the Pao de Acucar and Extra Mercado chains, said the agreement covers 4.568 billion reais of debt without real collateral.
Creditors representing 57.49 percent of the claims subject to the plan approved it, above the legal minimum, g1 reported. The decision came from the 3rd Bankruptcy and Judicial Recovery Court of the Central Forum of Sao Paulo. CNN Brasil said the plan was filed on 5 May 2026. A court had authorized processing of the request in March.
Homologation means the debts are novated and follow the payment terms in the agreement. The plan includes new debentures and a 200 million reais fundraising, CNN Brasil reported. It also provides for conversion of about 1.1 billion reais of debt into equity and about 2 billion reais of cash debt, with amortizations estimated through 2036.
GPA told the market that stores keep operating and that obligations to suppliers, customers and partners outside the plan remain in force. The claims covered are unsecured credits not tied to ordinary supply, services or rent, CNN Brasil said.
This is a court approval of a negotiated plan, not a full judicial recovery. No store-closure list was published with the homologation.
People Sentiments Mixed
- GPA said operations continue normally and that it keeps obligations to partners outside the recovery plan.