June 5, 2020 / 2:33 PM / a month ago

Brazil fashion retailer Restoque to restructure debt with financial creditors

SAO PAULO, June 5 (Reuters) - Brazilian fashion retailer Restoque Comercio e Confeccoes de Roupas SA said on Friday it has reached a deal with creditors to restructure its debt.

A source told Reuters that the company has a debt of 1.5 billion reais ($301 million), with Banco Santander Brasil , Itau Unibanco Holding SA, Banco Bradesco and state-controlled lender Banco do Brasil SA among the main creditors.

Restoque, which owns fashion chain Le Lis Blanc, 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.

“The deal covers exclusively the company’s financial creditors (financial institutions and debenture holders) ... and does not imply changes in the company’s usual operations,” said Restoque.

According to the retailer, 70% of the total debt will mature only at the end of June 2025.

Restoque also plans a capitalization transaction worth 150 million reais ($30.15 million) by the end of 2021. The deal needs to be approved by a shareholders assembly to be yet scheduled.

Shares in Restoque traded on the Sao Paulo stock exchange were down almost 15% on Friday morning at 7.49 reais after the company announced its debt restructuring.

$1 = 4.9745 reais Reporting by Paula Arend Laier and Tatiana Bautzer; Writing by Gabriela Mello; Editing by Steve Orlofsky

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