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☆ Banco do Brasil's quarterly profit edges up on interest income
▼ + stars: | 2023-11-08 | by ( ) www.reuters.com time to read: +1 min

Banco do Brasil's adjusted net income reached 8.79 billion reais ($1.79 billion) during the period, while analysts polled by Refinitiv expected 8.98 billion reais. Loan-loss provisions were at 7.52 billion reais in the period, up 4.7% from the previous quarter and 66.4% higher than a year earlier. Part of that growth was caused by the reclassification of debt from struggling retailer Americanas (AMER3.SA), Banco do Brasil said. The bank's 90-day loan default ratio grew 0.8 percentage points compared to the previous quarter to 2.81%, still well below the delinquency level of its listed peers. The company's interest income rose 21.1% from a year earlier to 23.68 billion reais, while analysts expected 23.28 billion reais.

Persons: Leonardo Benassato, Peter Frontini, Anthony Esposito, Sandra Maler Organizations: Banco, REUTERS, SAO PAULO, Brasil SA, Americanas, Brasil, Thomson Locations: Brasil, Uberaba, Minas Gerais, Brazil

☆ Brazil's securities watchdog agrees to 'plea bargain' on Americanas' probe
▼ + stars: | 2023-09-30 | by ( ) www.reuters.com time to read: +1 min

People walk in front of a Lojas Americanas store in Brasilia, Brazil January 12, 2023. REUTERS/Ueslei Marcelino/File Photo Acquire Licensing RightsCompanies Americanas SA - Em Recuperacao Judicial FollowSept 29 (Reuters) - Brazil's securities watchdog CVM said on Friday it has approved a mechanism similar to a plea bargain for cases related to bankrupt Brazilian retailer Americanas (AMER3.SA), in the midst of a billion-dollar financial fraud probe. The content obtained through the agreement would also facilitate and speed up investigations, the CVM added. There are at least 23 procedures against the Brazilian retailer, according to CVM, including two sanctioning proceedings, when accusations were made. This is the first time CVM has used such a mechanism to investigate a company.

Persons: Ueslei Marcelino, CVM, Carolina Pulice, Michael Perry Organizations: REUTERS, Americanas, Thomson Locations: Brasilia, Brazil

☆ Former CEO of Brazil's Americanas denies knowledge of accounting fraud
▼ + stars: | 2023-09-05 | by ( Carolina Pulice | ) www.reuters.com time to read: +2 min

Allegations that Gutierrez and other executives were involved in accounting fraud were first made in June. Several former Americanas directors have testified before the congressional committee in the past few weeks. LTS said his comments "do not provide any proof of his allegations or refute evidence of his participation in the fraud". The holding company described what happened at Americanas as "cunning fraud". ($1 = 4.9373 reais)Reporting by Carolina Pulice Editing by Edwina Gibbs and David GoodmanOur Standards: The Thomson Reuters Trust Principles.

Persons: Miguel Gutierrez, Gutierrez, Americanas, Jorge Paulo Lemann, Carlos Alberto Sicupira, Marcel Telles, LTS, Sergio Rial, Edwina Gibbs, David Goodman Organizations: Reuters, Carolina, Thomson Locations: Americanas

☆ Ex-CEO of Brazil's Americanas says he did not expect to lead bankrupt firm
▼ + stars: | 2023-08-22 | by ( ) www.reuters.com time to read: +1 min

Aug 22 (Reuters) - The former head of Brazilian retailer Americanas (AMER3.SA) quit two weeks into the job because he had not expected to take over a bankrupt firm, he told Brazilian lawmakers probing its $5 billion accounting fraud on Tuesday. Former Chief Executive Sergio Rial, who testified in a congressional investigation, resigned on Jan. 11, the same day Americanas revealed accounting inconsistencies that were later found to be fraud. I did not buy into an insolvent project," he told lawmakers, saying he had not expected Americanas' debt to exceed its assets. Rial in March testified before senators saying Americanas' previous management had created difficulties in disclosing information about the company's situation and the succession process. Reporting by Carolina Pulice and Peter Frontini; Editing by Cynthia OstermanOur Standards: The Thomson Reuters Trust Principles.

Persons: Sergio Rial, Rial, Americanas, Carolina Pulice, Peter Frontini, Cynthia Osterman Organizations: SA, Jan, Santander Brasil, 3G, Thomson

The Australian scandal is the latest in a number the "big four" professional services firm has faced around the globe. Auditor PwC said it was unable to comment on client issues due to confidentiality clauses. Its auditor PwC and affiliates agreed to pay $33 million in fines and compensation to settle U.S. litigation in 2011. India's market regulator barred PwC's local affiliate from auditing listed companies for two years in 2018, but that was overturned the following year. ($1 = 1.4984 Australian dollars)Reporting by Lewis Jackson; Editing by Praveen Menon and Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

Persons: Kristin Stubbins, PwC, Lewis Jackson, Praveen Menon, Sonali Paul Organizations: SYDNEY, PricewaterhouseCoopers, International, Wyelands Bank, Colonial Bank ., Satyam, Enron, PwC, Thomson Locations: Australia, Brazil, Britain, Alabama, Colonial Bank . India

☆ Brazil's Americanas rushes to produce new financials, strike deal with debt holders
▼ + stars: | 2023-06-22 | by ( Carolina Pulice | ) www.reuters.com time to read: +3 min

Americanas, which filed for bankruptcy protection in January after uncovering 20 billion reais, some $4 billion, in accounting fraud, is now negotiating changes in the plan to win over debt holders who have previously indicated they would reject it. Americanas said in a securities filing it expected to disclose its previous financial information by August 31. With almost 11 billion reais ($2.31 billion) in Americanas debt in hand, the debt holders are considering demanding smaller haircuts than the roughly 70% the restructuring plan calls for and additional compensation for their losses, according to two sources close to the matter. "Most of the (debt) can't be converted into shares - for pension or credit funds, there are legal restrictions, said Adriano Casarotto, a credit manager at Western Asset which holds 300 million reais in Americanas debt. In a statement, Americanas said it remains "committed to its creditors" to build a consensus on its recovery plan and that is still subject to adjustments.

Persons: Americanas, Leonardo Coelho, Adriano Casarotto, Carolina Pulice, Anthony Esposito, Diane Craft Organizations: MEXICO CITY, Americanas SA, Americanas, Western, Thomson Locations: MEXICO

☆ Brazil watchdog offers plea deals to Americanas employees in fraud probe
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, June 20 (Reuters) - The president of Brazil's securities watchdog CVM on Tuesday urged employees from Americanas (AMER3.SA) with information about the retailer's alleged multi-billion-dollar fraud to give testimony in exchange for potential plea deals. Americanas last week admitted to a large-scale accounting fraud with current top managers slamming former executive, banks and auditors for their alleged involvement in "fraudulently altered" financial statements. Americanas filed for bankruptcy protection in January after uncovering an over $4 billion accounting scandal. The report issued on Tuesday accused ex-CEO Miguel Gutierrez and half a dozen other former executives and employees of committing fraud. Reporting by Patricia Vilas Boas; Writing by Carolina Pulice; Editing by Sarah Morland and Aurora EllisOur Standards: The Thomson Reuters Trust Principles.

Persons: CVM, Joao Pedro Barroso, Nascimento, Americanas, Miguel Gutierrez, Patricia Vilas Boas, Carolina Pulice, Sarah Morland, Aurora Ellis Organizations: SAO PAULO, Federal, Thomson Locations: Americanas

☆ Ex-CEOs at Brazil's Americanas did not make proper accounting disclosures - regulator
▼ + stars: | 2023-06-05 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, June 5 (Reuters) - Brazil's securities regulator has accused two former CEOs of retailer Americanas of failing to comply with information disclosure requirements following an investigation into the firm's accounting inconsistencies, the agency said. According to a document from securities regulator CVM made public on Monday, the two ex-CEOs, Sergio Rial and Joao Guerra, also failed to meet other obligations on informing investors. Americanas entered bankruptcy protection in January after uncovering around $4 billion in accounting inconsistencies. Americanas said in a statement that it was monitoring the CVM investigation and hoped any irregularities would be "duly clarified". The company did not mention the accusations against Guerra in its statement and he did not respond to a query via LinkedIn.

Persons: CVM, Sergio Rial, Joao Guerra, Rial, Guerra, Americanas, Andre Romani, Carolina Pulice, Jamie Freed Organizations: SAO PAULO, Thomson

☆ Brazil's Americanas to seek bidders for fruit and vegetable unit
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, May 18 (Reuters) - Brazil retailer Americanas SA (AMER3.SA) said on Thursday it will next week start to seek potential bidders for the acquisition of its Hortifruti Natural da Terra (HNT) business unit. In a securities filing, Americanas said it has hired Citigroup Global Markets Brazil as the financial adviser for conducting the process to sell the unit, which markets fruits and vegetables. Americanas noted, however, it has started "evaluating strategic alternatives for the business, which may involve preliminary contacts with potential interested parties." Co and HNT," Americanas said in the filing. Reporting by Carolina Pulice and Peter Frontini; Editing by David Alire GarciaOur Standards: The Thomson Reuters Trust Principles.

☆ Brazil's Americanas looking for buyer for stake in Grupo Uni.co
▼ + stars: | 2023-05-15 | by ( ) www.reuters.com time to read: 1 min

SAO PAULO, May 15 (Reuters) - Brazilian retailer Americanas SA (AMER3.SA), which filed for bankruptcy earlier this year after an accounting scandal, said on Monday it has started the market sounding process to prospect parties interested in buying its stake in Grupo Uni.co. Americanas, which has the billionaire trio that founded 3G Capital as reference shareholders, said in a securities filing it had hired Citigroup (C.N) as financial advisor to conduct the process, launched as part of its reorganization plan. Reporting by Gabriel Araujo; Editing by Steven GrattanOur Standards: The Thomson Reuters Trust Principles.

☆ Powerful Brazilian lawmaker orders Americanas accounting probe
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, April 26 (Reuters) - The head of Brazil's lower house authorized on Wednesday the creation of a committee to investigate Americanas (AMER3.SA), the retailer at the center of a nearly $4 billion accounting scandal. Arthur Lira gave the green light to create the so-called CPI committee, which will include 27 federal lawmakers appointed by party leaders, the lower house said in a statement posted on its website. The legislative leader's decision comes months after accounting inconsistencies were revealed that forced the firm into bankruptcy. Last month, Americanas' former CEO Sergio Rial spoke at a Senate hearing about the retailer's financial meltdown. The current CEO, Leonardo Coelho Pereira, and the president of Brazil's banks federation Febraban, Isaac Ferreira, also attended.

☆ Brazil's government takes measures to boost consumer and capital market credit
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +3 min

BRASILIA, April 20 (Reuters) - Brazil's government announced a package of 13 measures on Thursday to ease consumer access to credit and reduce associated costs in the capital and insurance markets, a move the new leftist administration hopes will boost investment and revitalize a slowing economy. Brazil's Secretary of Economic Reforms, Marcos Barbosa, said the measures aim to strengthen the credit market in the long term, paving the way for the country's capital market to become as robust or larger than the 5 trillion reais ($988 billion) banking market. The package includes a decree to allow the issuance of bonds with an income tax exemption for investments in sectors such as healthcare, education, and public security. The government also plans to introduce legislation to enhance safeguards for minority investors in the capital market against harm caused by unlawful actions of controlling shareholders and administrators. Finance Minister Fernando Haddad on Monday had indicated that the package would also feature a measure to lower revolving credit card rates.

☆ Brazil's Americanas faces more debt, asset sales as it restructures
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +2 min

Sources with knowledge of the situation, however, told Reuters that the company shoulders a higher debt load than previously disclosed. Americanas presented the first draft of a legal recovery plan to a court in Rio de Janeiro state, O Globo newspaper reported. In January, the company entered bankruptcy protection after disclosing accounting "inconsistencies" worth 20 billion reais ($3.78 billion). The company said in early March it had offered a 10 billion reais capital injection to its creditors that will come from top shareholders. Sources close to the matter said the company holds debts of more than 50 billion reais, which exceeds the 42 billion reais previously acknowledged during the bankruptcy proceedings.

☆ Report on Americanas' woes to be presented to Brazil court next week
▼ + stars: | 2023-03-17 | by ( Rodrigo Viga Gaier | ) www.reuters.com time to read: +1 min

RIO DE JANEIRO, March 17 (Reuters) - A report detailing Brazilian retailer Americanas SA's (AMER3.SA) bankruptcy is being prepared by the trustee's team of over 100 experts and is expected to be presented to a Rio de Janeiro court next Monday, said a source close to the matter on Friday. "The final report will be closed and read on Monday before being presented to the court," said the source. Americanas, backed by the billionaire trio that founded investment firm 3G Capital, has accumulated debt of more than 40 billion reais. After the document is submitted, the court will set a deadline for Americanas to present its judicial recovery plan. On Thursday, Americanas' former chief executive testified at Brazil's securities watchdog, according to a source.

☆ Brazilian securities watchdog launches new probes into Americanas accounting fiasco
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, March 17 (Reuters) - Brazilian securities watchdog CVM said on Friday it has launched two new probes into retailer Americanas SA's (AMER3.SA) 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. 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. The launch of the probes comes a day after Americanas' former CEO Miguel Gutierrez testified before CVM.

☆ Foreign Companies’ Supply Financing to Face Greater Disclosure Rules Next Year
▼ + stars: | 2023-03-09 | by ( Jennifer Williams-Alvarez | ) www.wsj.com time to read: 1 min

Brazilian retailer Americanas SA in January filed for bankruptcy protection after revealing a roughly $4 billion hole in its balance sheet that was at least in part masked by its supply-chain finance program. An international accounting standards-setter has moved up by a year the timing for when companies would have to disclose details on their supply-chain financing, a move aimed at improving transparency after several high-profile blowups in recent years. The International Accounting Standards Board, which sets standards required globally, tentatively agreed at a Feb. 20 meeting on a one-year acceleration for standards that aim to outline what companies disclose on their supply-chain finance programs. As of Jan. 1, 2024, instead of 2025, businesses subject to the standards will have to disclose details such as the size and certain terms of their supply-chain finance programs.

☆ Americanas scandal won't affect Brazil banks much even in "extreme scenario" - cenbank
▼ + stars: | 2023-03-09 | by ( ) www.reuters.com time to read: +2 min

BRASILIA, March 9 (Reuters) - Brazil's central bank stated on Thursday that the potential impact of the accounting scandal involving retailer Americanas SA on banks would be 'insignificant' even in an extreme scenario. Americanas (AMER3.SA) filed for bankruptcy in January after disclosing "accounting inconsistencies" worth 20 billion reais ($3.84 billion), leading banks to increase their provisioning in their most recent earnings release. The central bank noted that the provisions stem from "a specific event related to a large company" and have already absorbed most of the materialization of the risk. "The central bank estimated the remaining potential impact, plus a contagion scenario over the entire production and supply chain that depends on the company in a relevant way," it said. "In this extreme scenario, the impact on the consolidated financial system is insignificant and there would be no capital default in any financial institution," it added.

☆ Americanas proposes $1.9 bln for creditors from top shareholders
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: 1 min

SAO PAULO, March 7 (Reuters) - Bankrupt Brazilian retailer Americanas SA (AMER3.SA) said on Tuesday it has offered a capital injection to its creditors of 10 billion reais ($1.93 billion) which would come from top shareholders. The company added that so far there is no agreement on the proposal. ($1 = 5.1910 reais)Reporting by Carolina Pulice; Editing by David Alire GarciaOur Standards: The Thomson Reuters Trust Principles.

☆ BTG Pactual joins Brazilian lenders hit by post-Americanas provisions
▼ + stars: | 2023-02-13 | by ( Gabriel Araujo | ) www.reuters.com time to read: +3 min

SAO PAULO, Feb 13 (Reuters) - Banco BTG Pactual SA (BPAC3.SA) on Monday became the latest Brazilian lender to be affected by bad credit provisions due to what it called a "specific, widely publicized event," likely referring to the bankruptcy of Americanas SA (AMER3.SA). BTG reported a quarterly net profit of 1.64 billion reais ($314.5 million), slightly down from 1.74 billion a year earlier and below the market consensus of 2.27 billion, according to analysts polled by Refinitiv. BTG's "good cost discipline" in the quarter helped reduce the impact of the provisions, JPMorgan said. "Despite all the challenges, we expect higher returns in 2023, with greater operating leverage and possibly even higher capital and liquidity levels," BTG Chief Executive Officer Roberto Sallouti said. ($1 = 5.2151 reais)Reporting by Gabriel Araujo; Editing by David Holmes, Kirsten Donovan and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

SAO PAULO, Feb 10 (Reuters) - Shares in Brazil's Banco Bradesco SA (BBDC4.SA) fell to their lowest level in almost two years on Friday after the bank reported fourth-quarter net income equivalent to less than half that of analysts' estimates. Bradesco reported a 75% drop in net income and sharply increased its provisions for loan losses to around $3 billion. The bank's preferred shares were down 6.6% in early trading in Sao Paulo to 12.89 reais, paring losses that reached 8.7% after the open. Bradesco set aside 4.9 billion reais in provisions in the fourth quarter to cover its loans to retailer Americanas SA (AMER3.SA), which has asked for bankruptcy protection. Reporting by Aluisio Alves, writing by Tatiana Bautzer; editing by Jason Neely and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

☆ Americanas accounting scandal was a 'fraud,' says CEO of Brazil's Itau
▼ + stars: | 2023-02-08 | by ( ) www.reuters.com time to read: 1 min

SAO PAULO, Feb 8 (Reuters) - The chief executive of Brazil's biggest private lender Itau Unibanco (ITUB4.SA) said on Wednesday that the accounting inconsistencies that led retailer Americanas SA (AMER3.SA) to request bankruptcy protection represent a case of 'fraud'. Milton Maluhy Filho's remarks came after Itau, which had a multi-million-dollar exposure to Americanas, had to set aside more cash for bad loans in the fourth quarter. Maluhy added that Itau has not identified any case similar to that of Americanas, which reported around $8 billion in debt after disclosing "inconsistencies" in its accounting. Reporting by Aluisio Alves; Editing by Steven GrattanOur Standards: The Thomson Reuters Trust Principles.

☆ Brazil's Americanas board to remove top executives after accounting scandal
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +2 min

SAO PAULO, Feb 3 (Reuters) - Brazilian retailer Americanas SA (AMER3.SA) said on Friday its board had decided to remove three directors and three executives amid investigations over so-called accounting inconsistencies. Americanas, backed by the billionaire trio that founded investment firm 3G Capital, entered bankruptcy protection last month after disclosing "inconsistencies" in its accounting worth 20 billion reais ($3.88 billion). In a securities filing, Americanas said three directors and three executives had been removed "from all their roles and activities at the company and its subsidiaries." Americanas said it had also removed executives Fabio da Silva Abrate, Flavia Carneiro and Marcelo da Silva Nunes. Americanas added that it has hired a forensic expertise institute and a consultancy to protect company data while its reorganization and legal procedures take place.

☆ Large Brazilian banks may set aside around $890 mln for Americanas losses in Q4
▼ + stars: | 2023-02-01 | by ( Aluisio Alves | ) www.reuters.com time to read: +1 min

SAO PAULO, Feb 1 (Reuters) - Brazilian banks may start setting aside provisions for losses with retailer Americanas already in the fourth quarter of 2022, analysts say. Banks such as BTG Pactual , Bradesco (BBDC4.SA), Santander Brasil , Itaú Unibanco Holding (ITUB4.SA) and Banco do Brasil (BBAS3.SA) have around 15 billion reais in loans with Americanas, according to analyst reports. Analysts estimate the banks may provision around 30% of their loans in the fourth quarter, which would be equivalent to 4.5 billion reais ($890 million), even with bankruptcy protection taking place in January, as a precautionary measure allowed by the Brazilian central bank. The first Brazilian bank to release fourth quarter earnings, on Thursday, is Banco Santander Brasil. ($1 = 5.0544 reais)Reporting by Aluisio Alves; Writing by Tatiana Bautzerd; Editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Brazil's Americanas requests financing of at least $197 mln -filing
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +1 min

Jan 31 (Reuters) - Brazilian retailer Americanas SA (AMER3.SA) has requested debtor-in-possession financing of at least 1 billion reais ($197.12 million) as part of its bankruptcy process, according to a securities filing Tuesday. The financing aims to help the company maintain the "normal course of its business and reinforce its liquidity," the firm said. Americanas, backed by the billionaire trio that founded investment firm 3G Capital, entered bankruptcy protection this month after disclosing "inconsistencies" in its accounting, leading top investors such as BlackRock (BLK.N) and Capital Group to scale back their positions in the firm. It added it has been in talks with reference shareholders - Brazilian billionaires Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira, the founders of 3G Capital - about the possibility of them subscribing up to the totality of the financing minimum amount. ($1 = 5.0731 reais)Reporting by Carolina Pulice and Gabriel Araujo; Editing by Isabel Woodford and Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.

☆ Brazilian court orders seizure of emails of bankrupt retailer Americanas
▼ + stars: | 2023-01-26 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +2 min

SAO PAULO, Jan 26 (Reuters) - A Brazilian court has ordered the seizure of all corporate emails of managers and board members from bankrupt retailer Americanas SA (AMER3.SA) sent and received over the last 10 years, according to documents seen by Reuters. Bradesco said it was seeking evidence for potential litigation against Americanas, its managers, and potentially its controlling shareholders over "abuse of power." Americanas' largest shareholders are the billionaire founders of 3G Capital, Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles. The judge also ordered the seizure of all emails of employees in the finance and accounting division. Americanas is one of Brazil's largest retailers and has been in business for over 90 years.

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