South America

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.

Venezuela will push back a legal deadline on $60 billion of defaulted debt in a bid by President Nicolas Maduro to prevent creditors from filing a wave of lawsuits while he attempts to regain recognition from the U.S., Bloomberg News reported. Maduro’s administration announced Thursday it suspended the statute of limitations on bonds issued by the government and state oil company, PDVSA, according to statements published on government websites. The suspension will be in effect for five years or until the US government lifts economic sanctions that prevent a debt restructuring.

In his first public comments since blowing the whistle on a 20 billion real ($3.8 billion) accounting hole on Jan. 11 that led to the collapse of one of Brazil’s most well-known retailing chains, Sergio Rial told senators that he was kept in the dark before taking over and then immediately realized the firm was insolvent, Bloomberg News reported. During a hearing in Brasilia to discuss the downfall of Americanas SA, Rial, who was chief executive officer from Jan.

Brazilian bank lending fell for the second consecutive month in February, according to data from the central bank published on Wednesday, adding to concerns about a potential credit crunch amid high borrowing costs, Reuters reported. Outstanding loans slipped 0.1% in February from the previous month to 5.319 trillion reais ($1.03 trillion), pushing 12-month growth down to 12.6% from 13.8% in the previous month. The performance was driven by a 0.7% decline in corporate credit, while there was a 0.4% increase in household loans.

Brazil's central bank stated on Tuesday that current monetary policy requires "serenity and patience," indicating that worsening inflation expectations justified its decision to maintain a hawkish stance towards future steps, Reuters reported. In the minutes of the meeting held between March. 21-22, when the rate-setting committee known as Copom kept the benchmark rate at 13.75%, the central bank noted that the Finance Ministry's commitment to implementing fiscal measures and the reinstatement of fuel taxes have reduced the upside risk on short-term inflation.

The management team at Brazilian retailer Americanas SA told its external auditor and internal auditing committee as late as December 2022 that there were no supply-chain financing operations taking place at the firm, Bloomberg News reported. At the same time, executives gave the securities regulator CVM conflicting information, and a central bank system showed the account registering supply chain financing at the firm had ballooned to almost 17 billion reais ($3.2 billion).

Fitch Ratings on Friday cut Argentina's foreign currency rating to "C" from "CCC-" citing an "imminent" default after the country ordered public sector bodies to sell or exchange their holdings of some sovereign dollar bonds, Reuters reported. A presidential decree said on Thursday that public sector bodies would have to sell or auction five local law dollar bonds maturing between 2029 and 2041, and to swap six foreign law dollar bonds for peso debt.

Peru's government expressed qualified interest in tapping the international bond market later this year in a bid to better manage liabilities, Economy Minister Alex Contreras said on Friday, Reuters reported. The government might turn to capital markets during the first semester of this year if opportunities exist, the economy chief said during a news conference. The minister also forecast what he described as a "moderate" economic expansion in March, and then 4% growth in April.

Americanas SA, the embattled Brazilian retailer, proposed a plan to restructure its 42.3 billion real ($8.1 billion) debt load some two months after obtaining bankruptcy protection that includes losses for unsecured creditors, a capital injection and asset sales, Bloomberg News reported. The plan, released late Monday in a securities filing, foresees a capital injection of 10 billion reais and potential asset sales including its Hortifruti Natural da Terra food markets, stake in Uni.Co and corporate jet.

A power struggle and a trail of unpaid oil sales led Venezuela’s ruling elite to purge one of their own inner circle this week as the government tries to recover billions in missing energy revenues, Bloomberg News reported. Energy Minister Tareck El Aissami’s resignation Monday comes after months of close oversight by Vice President Delcy Rodriguez, the regime’s most powerful official after President Nicolas Maduro.