Brazil’s BTG gets court decision reversing part of Americanas’ protection from creditors By Reuters

SAO PAULO (Reuters) – Brazilian bank BTG Pactual obtained a court decision on Wednesday overturning part of Americanas SA’s protection from creditors, according to court documents seen by Reuters, in a move the retailer says “harms its viability”.

The decision of appeal judge Flavio Horta Fernandes reversed a previous order that BTG Pactual return money it received from the company’s accounts with the bank to pay for a credit line.

BTG confirmed the decision in a securities filing, but did not give details.

Americanas told Reuters in a statement that the “unilateral action taken by its creditors harms its viability”, adding it was still seeking a short-term solution for its creditors.

Americanas revealed last week almost $4 billion in “accounting inconsistencies”. Its chief executive and chief financial officer resigned. Shares of the retailer have plunged more than 80% this month.

Later on Wednesday, Brazilian lender Bradesco said it had asked a Rio de Janeiro court to only allow Americanas to withdraw funds from the bank with prior approval.

Local newspaper O Estado de S. Paulo published earlier that Bradesco’s petition stated that Americanas “may come to file for bankruptcy protection” and, therefore, the bank’s request was necessary.

Americanas confirmed that Bradesco withheld more than 450 million reais ($86.77 million) from the company’s cash position, “acting in disagreement with the injunction” the retailer had obtained protecting it from creditors.

($1 = 5.1863 reais)