Americanas and Oi: How the bankruptcy of large companies affects the Brazilian economy
The year started with a bomb in the retail market: the Americans (AMER3) went into judicial recovery after the discovery of a BRL 20 billion financial gap. Now, the Hey (OIBR4) filed for court protection against creditors a month and a half after leaving judicial recovery.
But it’s not just companies and shareholders who are impacted when big companies go bankrupt.
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“It is negative for the economy to have one of the biggest retailers in the country going bankrupt, precisely because it plays an important role in the flow of capital in the country as a whole”, points out Heitor De Nicola, partner and Variable Income specialist at Acqua Vero .
He points out that companies like Americanas and Oi make the economy spin by selling products and generating jobs. And, because of its size, it has a ripple effect throughout the supply chain.
A medium-sized supplier that has Americanas as its main customer, for example, will lose most of its revenues, will need to lay off employees and, depending on the situation, may go bankrupt together.
André Fernandes, head of variable income and partner at A7 Capital, reinforces that the greatest impact is on the equity market. work. Americanas alone employs 45,000 people, and another 60,000 indirectly.
“Including the minister of Work, Luiz Marinho, made harsh criticisms of the company’s controlling group, even citing that the gap ‘smells like fraud’. This tends to heat up conversations to resolve the situation even more, due to the fear of 45,000 people being fired in the event of a bankruptcy,” he says.
Fernandes points out that in addition to layoffs, whenever a large company enters a process like this it is bad, as it puts a brake on investments and means one less channel to generate employment, income and economic activity.
You banks they are also usually the biggest creditors of these companies – so they are the ones who end up having to deal with the biggest loss.
In short, Americanas’ problem was with the drawn risk. Basically, the company anticipates the payment flow through financial institutions, the institutions pay the debts of suppliers and the company owes the banks.
This is a common mechanism in the retail. But the bankruptcy of a large retailer creates insecurity and distrust for the sector as a whole.
With this, banks can tighten the release of credit for companies, reducing deadlines and increasing fees.
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
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