RETAIL CRISIS
Supermarket giant Pão de Açúcar tries to slash massive debt
Shareholder battles have hindered GPA's performance. Photo: Alf Ribeiro/Shutterstock
Grupo Pão de Açúcar (GPA), the Brazilian retail group that owns major supermarket chains Pão de Açúcar and Extra, disclosed on Tuesday that it had entered an out-of-court reorganization process, as mounting debt raised questions about its long-term viability.
This Brazilian legal mechanism allows companies to renegotiate obligations with creditors outside of formal bankruptcy protection. Unlike traditional insolvency proceedings, it does not require a restructuring plan to be approved by a judge — only that it be ratified by a business court after at least one-third of creditors accept it.
GPA said that its plan, approved unanimously by the company’s board, covers up to…
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