Brazil's Americanas Faces Extended Bankruptcy Battle with Creditors

Brazilian retailer Americanas SA, which filed for bankruptcy protection in January, faces resistance from key creditors to a reorganization plan that could lead to a haircut of up to 80% on their claims, Reuters reported. The plan, submitted last week to a Rio de Janeiro court, would include a capital injection of 10 billion reais ($1.95 billion) from its top shareholders announced earlier this month. The billionaire trio that founded 3G Capital - which controls consumer goods giants like Kraft Heinz Co and Anheuser Busch Inbev - owns about a third of Americanas. The amount offered under the reorganization plan falls short of what some debt holders were hoping for, according to three people who declined to be named because they are involved in the negotiations. "Creditors are more interested in what shareholders can pay, in particular if they can push them harder," one of the people said. The proposal is seen as an "absurd" by some, given that it foresees such large creditor discounts with such powerful shareholders, a second person said. Read more.