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Brazilian securities watchdog launches new probes into Americanas accounting fiasco

Published 03/17/2023, 07:17 PM
Updated 03/17/2023, 07:21 PM
© Reuters. FILE PHOTO: People walk in front of a Lojas Americanas store in Brasilia, Brazil January 12, 2023. REUTERS/Ueslei Marcelino

SAO PAULO (Reuters) - Brazilian securities watchdog CVM said on Friday it has launched two new probes into retailer Americanas SA's accounting scandal and the firm's reorganization process.

CVM said it launched an administrative proceeding to analyze "failures to disclose relevant information by (Americanas) regarding proposals for capitalization and the renegotiation of debts with creditors and the assessment of the sale of assets."

Americanas entered bankruptcy protection in January shortly after disclosing accounting inconsistencies worth 20 billion reais ($3.78 billion) and overall debt of more than $8 billion. CVM and other Brazilian authorities have since launched investigations.

Earlier this month, the retailer said it had offered a capital injection to its creditors of 10 billion reais ($1.93 billion) which would come from top shareholders.

© Reuters. FILE PHOTO: People walk in front of a Lojas Americanas store in Brasilia, Brazil January 12, 2023. REUTERS/Ueslei Marcelino

CVM is also looking into any irregularities regarding compensation paid by Americanas to former Chief Executive Sergio Rial, who took over the company just nine days before the scandal broke and resigned shortly thereafter.

The launch of the probes comes a day after Americanas' former CEO Miguel Gutierrez testified before CVM.

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