Felsberg assists Livraria Cultura in debt restructuring
Brazilian law firm Felsberg Advogados has assisted local bookstore chain Livraria Cultura in gaining the approval of its creditors for its 285 million reais ($73.3 million) debt restructuring plan.
Founded in 1947, Livraria Cultura also sells music, films and electronic gadgets and has branches in Brasilia, Curitiba, Fortaleza, Recife, São Paulo, Salvador de Bahia, Porto Alegre, among other cities.
The company agreed with representatives of thirty creditors that its debts will be paid in full within 12 months of the approval of the judicial recovery plan.
The company’s creditors had requested a judicial recovery of Livraria Cultura’s debts in October and reached an agreement in April to accept a proposed discount of up to 70 per cent on unsecured claims with a term of up to 12 years for amortization of all debt, with a two-year grace period.
The judicial agreement also states that suppliers that have ceased to engage with the company will receive only 30 per cent of outstanding payments owed.
Felsberg’s team was led by partner Fabiana Solano.
