Brazils Americanas makes offer to creditors but no deal reached

SAO PAULO (Reuters) – Brazilian retailer Americanas SA on Thursday failed to reach a deal on proposal to creditors that included a multi-billion-real capital injection by key shareholders as part of its bankruptcy process.

Americanas, which has the billionaire trio that founded 3G Capital as reference shareholders, entered bankruptcy protection earlier this year after uncovering roughly $4 billion in “accounting inconsistencies.”

The retailer said the offer presented to creditors by financial advisor Rothschild & Co included a capital increase of 7 billion reais ($1.34 billion) backed by the trio formed by Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupura.

The proposal also included the repurchase of debt of about 12 billion reais and conversion of roughly 18 billion reais in debt to equity, Americanas added in a securities filing, while noting no deal had been reached.

“The company expects to keep holding constructive talks with its creditors in the search for a solution, allowing it to maintain its activities,” said the retailer, whose stores are ubiquitous at Brazilian shopping malls.

Shares in Americanas were up 8% in midday trading, although still down roughly 87.5% year-to-date.

($1 = 5.2405 reais)

(Reporting by Gabriel Araujo; Editing by Brendan OBoyle)