The scheme lasted for years because the company carried out risk-taking operations without authorization from governance, says company
The size of the fraud in Americans was R$25.2 billion, the company announced this Thursday (16.Nov.2023). The company reported a net loss of R$6.2 billion in 2021 and R$12.9 billion in 2022.
The company accuses Miguel Gutierrez, former CEO of the company, of fraud. He left the company in December 2022 after leading the company for 20 years. The retailer’s CEO, Leonardo Coelho, said that the financial statements published this Thursday (16.Nov) are “free” of irregularities. He argued that the company was a victim of fraud “sophisticated” It is “well architected”.
The company’s gross debt went from R$7.8 billion in January 2021 to R$37.3 billion in December 2022. The worsening is due to the reclassification of withdrawn risk operations (R$15.9 billion), from working capital (R$1.4 billion) and supplier accounts (R$13.3 billion).
The risk-drawn is based on the relationship between banks and financial institutions with the company. It is a type of anticipation of receivables.
Camille Faria, the company’s CFO, declared that the company’s cash position went from R$6.6 billion in January 2021 to R$2.5 billion at the end of 2022. Net equity went from R$9.5 billion positive to negative R$26.7 billion in the period.
“After all the work carried out by the company so far, it was possible to conclude that the total size of the results fraud suffered by the company was R$25.2 billion”he declared.
Of the total, there are R$20.4 billion in VPC irregularities (sale of cooperative advertising), R$1.2 billion in expense capitalization and R$3.6 billion in capitalized interest.
“The fraud left a cash hole in the company. It produced results that were not converted into cash generation. In our view, what allowed the scheme to last for multiple years and reach this amount was this ingenious mechanism of contracting, without necessary governance authorization, risk-drawn operations and hiding the supplier account”declared the CFO.
JUDICIAL RECOVERY
The company’s CEO, Leonardo Coelho, took over the company after it was already in judicial recovery. He said the company made the biggest retail recovery plan. He defended that he will seek an agreement with creditors to give the company sustainability.
The company presented a new proposal to creditors that is based on the capitalization of R$12 billion by reference shareholders – Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira.
The proposal aims for creditors’ negotiations to evolve in a “significantly”, said Americanas CFO, Camille. “We continue working hard to try to have an AGC (General Assembly of Creditors) to approve this plan in December this year”he declared.
Camille declared that the company will have a capital increase of R$24 billion with the recovery plan. Coelho declared that there was intentional manipulation of the company’s internal controls by senior management. He argued that Americanas was a victim of this scheme and said that the company will design a new job and semester plan in the 2nd semester. It should be made official at the company in the coming weeks, according to him.
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