The crisis in Americans (AMER3) brought up the discussion about investments in large banks, which were brutally hit by the retailer’s financial problems.
Your judicial recovery involves a debt of R$ 41.2 billion, of which R$ 26.4 billion corresponds to debts with 12 financial institutions.
This means that almost all major financial institutions are creditors of loans to Americans.
This situation naturally causes concern among investors in these banks, especially as the scandal came at a time when they were already facing skepticism from investors on account of microeconomic factors, such as rising defaults, and macro, as political discussions themes such as tax reform, independence of the central bank and the role of public banks in granting credit reduce the attractiveness of the sector.
Despite the debt being quite considerable and the whole macro scenario that the institutions are going through, I don’t think that the investor should avoid the sector. Our large banks are very solid and are already being penalized by the effect Americans. From now on, everyone will absorb this risk and carry on with their operations as normal.
In this way, even having been achieved, the effect Americans does not put the industry at risk.
I believe that the biggest challenge for banks will be the correct pricing for the credit offer. Still high interest rates and more selective credit are the Achilles heel for economic growth in 2023.
Of all financial institutions, the Bank of Brazil (BBAS3) is the one with the lowest exposure to ‘American risk’. Due to this low exposure, he suffered less in recent days and may perform better throughout this year.
Since the discovery of “inconsistencies in accounting entries” estimated at around R$ 20 billion, the Americans saw its shares melt in the stock market and faces a series of investigation processes after the accounting scandal reported by the company last month.
The company filed a request for judicial recoverywhich was accepted on the same day by Judge Paulo Assed Estefan, from the 4th Corporate Court of the Judicial District of Rio de Janeiro. The company is in the so-called ‘shield period’, a period of 180 days in which all its debts are suspended.
Saving the retailer is the main objective at the moment and creditors are already open to trying to find a solution to the problem.
Representatives of financial institutions are considering lending R$ 2 billion to the company. The loan could be made in the DIP (debtor-in-possession) modality and would help maintain the company’s operations.
It is worth remembering that this loan is aimed at companies undergoing judicial recovery, which ensures that these creditors go ahead in the payment queue.
The course of Americans It’s an open question, I don’t like the case. Under normal market conditions, the company is heading for the precipice. Unless its partners/controllers make billionaire contributions, we will hardly see a recovery for the retailer.
Source: Moneytimes
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