Court approves GPA's extrajudicial recovery plan to renegotiate R$4.6 billion in debt

Grupo Pão de Açúcar (GPA) obtained this Wednesday (7) judicial approval of its extrajudicial recovery plan, which foresees the reorganization of R$4.568 billion in debts.

The agreement was joined by creditors representing 57.49% of the total value of debts, a percentage above the minimum required by legislation.

The Court had authorized, in March, the processing of the request for extrajudicial recovery presented by GPA. Now, with approval, the plan has been officially validated by the Court and will take effect under the terms defined in the agreement with creditors.

GPA filed the request in March this year, on the same day it announced an agreement with its main creditors to renegotiate its debts.

🔎 What is extrajudicial recovery? It is a mechanism used by companies to renegotiate debts directly with their creditors, without going through the judicial recovery process. The objective is to obtain more favorable payment conditions, such as longer terms, and reorganize the company's finances.

Although the agreement is negotiated outside of Justice, it needs to be submitted to judicial approval to produce the effects provided for by law. During the process, the company continues to operate normally.

In the case of GPA, around R$4.5 billion in debts were renegotiated, without the need to enter into judicial recovery, a broader and more complex process, which is processed in court and follows specific rules for negotiating with creditors.