Grupo Casas Bahia, which is undergoing judicial recovery, secured a revolving credit line of up to R$250 million from Banco do Brasil. The facility is intended to bolster the company’s cash reserves as it restructures its debt.
The financing will allow the retailer to receive advance payments on sales. It is extraconcursal, meaning it is separate from the debts being renegotiated under the recovery plan.
Investors reacted negatively when the deal was announced on October 14, sending BHIA3 shares down 24.31% that day. Analysts say the facility is small compared with the company’s total debt of approximately R$17 billion. They also say the selloff reflects broader concerns about the company’s ability to successfully restructure its operations.