(Bloomberg) — Investors are losing faith in Brazil’s corporate borrowers in the aftermath of Americanas SA’s implosion, defying reassurances that the century-old retailer’s collapse was a one-off with no broader implications.
Instead, in just the few weeks since the default, power company Light SA, clothing retailer Marisa Lojas SA and travel-agency CVC Brasil have all hired advisers to restructure their debt. Telecom operator Oi SA won a court case to temporarily suspend its obligations, while S&P Global Ratings warned airline Gol could approve a restructuring that’s equivalent to a default.
“There will be a credit squeeze” following the recent events, according to Andre Jakurski, who helped found JGP Asset Management, one of Brazil’s first hedge fund firms. Companies will likely go bust “in torrents,” he warned at an event Wednesday.
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