Casas Bahia negotiates BRL 200M DIP loan with Itaú

Casas Bahia is in advanced negotiations to secure a debtor-in-possession loan of BRL 200 million with Itaú Unibanco, according to Pipeline on October 1, 2026. The transaction still depends on the approval of the company's judicial recovery process by the São Paulo court.

Five other institutions, including creditor banks and special situations funds, showed interest in financing the group, but discussions with Itaú advanced the most. The retailer initially sought a BRL 1 billion DIP facility. The plan is now to close a smaller tranche to provide financial breathing room and help rebuild merchandise inventories, while leaving room for additional funding later. DIP lenders hold payment priority and are expected to be backed by collateral such as tax credits and sales receivables.

The company filed for judicial recovery in August with BRL 17.3 billion in debt. On September 30, the São Paulo Public Prosecutor's Office issued an opinion supporting the suspension of the conversion of Casas Bahia debentures into shares.

The debentures were issued in 2025 during an extrajudicial recovery to restructure BRL 4.1 billion in debt. Mapa Capital converted about BRL 1.6 billion last year after taking over credit originally held by Bradesco and Banco do Brasil, which left Mapa with more than 85% of the company. In December, an additional BRL 2 billion was converted between Mapa and other creditors, reaching BRL 3.6 billion. Roughly BRL 567 million remains to be converted, including interest, which was listed in the judicial recovery. Shareholder Rafael Ferri and a minority shareholder association challenged the remaining equity conversion of the second series of the 11th debenture issuance.