Brazil’s Restoque secures deal to restructure its debt

New York - Brazilian fashion retailer Restoque Comercio e Confeccoes de Roupas SA announced earlier this month it has reached a deal with its creditors to restructure its debt.

Sources quoted by Reuters pointed out that the company has a debt of 1.5 billion reais (over 300 million dollars), with Banco Santander Brasil , Itau Unibanco Holding SA, Banco Bradesco and state-controlled lender Banco do Brasil SA among the main creditors.

The parent group of fashion chains Le Lis Blanc, Dudalina and Rosa Chá, said in a securities filing that the agreement grants it a grace period of 12 months from the approval date to start paying interest, while payment of installments of the principal amount will begin in June 2023.

According to company’s available documents, more than 70 percent of the total due will come up in June 2025.

The deal is just applicable to the financial creditors, leaving Restoque to negotiate with its providers and other commercial partners their respective ongoing agreements. The retail group is said to be looking into a capital increase of up to 150 million reais (about 30.25 million dollars) before the end of 2021.