Brazil Stock Guide — A São Paulo court has granted Grupo Casas Bahia (B3: BHIA3) broader financial protection during the early stages of its court-supervised restructuring, suspending enforcement actions against the retailer while also taking steps aimed at preserving access to cash and card receivables.
The ruling, issued on August 28 and disclosed by the company on Monday, August 31, brings forward the effects of Brazil’s 180-day stay period, which temporarily shields companies in judicial reorganization from most creditor enforcement. The clock was backdated to August 19, meaning the protection is currently scheduled to run through February 15, 2027.
The more consequential part of the decision, however, concerns liquidity. Judge Tainá Maria Leonardo de Oliveira ordered BTG Pactual to restore the companies’ full access to their bank accounts and electronic banking channels within 24 hours. Failure to comply could result in a daily fine of R$100,000, capped at 30 days.
The court also imposed restrictions on payment processors Cielo, Getnet and Redecard, ordering them to provide detailed statements on amounts withheld from the retailer’s receivables. They were barred from creating extraordinary reserves solely because Casas Bahia had filed for judicial reorganization and were instructed to release funds retained on that basis within 48 hours.
The ruling offers a glimpse into how quickly financial pressure intensified after the restructuring became public. According to the court, creditors obtained roughly R$9 million in judicial freezes within a matter of days, raising concerns that leaving the group exposed while its case was being reviewed could undermine its ability to keep operating.
Casas Bahia and nine affiliated companies declared total liabilities of approximately R$17.32 billion in the proceeding. The restructuring encompasses a group spanning brick-and-mortar retail, e-commerce, logistics and furniture manufacturing, with more than 765 stores across 21 Brazilian states and the Federal District, according to court records.
The stay does not yet amount to final court approval for the judicial reorganization to proceed. Before making that determination, the court ordered a preliminary verification of the companies’ operations, financial records and supporting documentation.
ACFB Administração Judicial, the court-appointed expert, has 30 days to complete the review and will have access to company systems, facilities, accounting records, contracts and the restructuring data room. The work is expected to cost about R$1.45 million.
The decision also addressed a dispute involving Banco do Brasil. Casas Bahia had initially reported a R$422 million debit involving the state-controlled lender, but Banco do Brasil submitted documentation showing that the debit had not actually been completed. The retailer later withdrew its requests against the bank, while the judge rejected Banco do Brasil’s request for sanctions over alleged bad-faith litigation.
For investors, the next major milestone is the preliminary verification report. Beyond determining whether the restructuring can formally move forward, the review could provide a clearer picture of the financial condition and operating structure behind one of Brazil’s largest retail restructurings.
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