Brazilian securities watchdog launches new probes into Americanas accounting fiasco


SAO PAULO (Reuters) – Brazilian securities watchdog CVM stated on Friday it has launched two new probes into retailer Americanas SA’s accounting scandal and the agency’s reorganization course of.

CVM stated it launched an administrative continuing to investigate “failures to reveal related info by (Americanas) relating to proposals for capitalization and the renegotiation of money owed with collectors and the evaluation of the sale of property.”

Americanas entered chapter safety in January shortly after disclosing accounting inconsistencies value 20 billion reais ($3.78 billion) and general debt of greater than $8 billion. CVM and different Brazilian authorities have since launched investigations.

Earlier this month, the retailer stated it had provided a capital injection to its collectors of 10 billion reais ($1.93 billion) which might come from prime shareholders.

CVM can be trying into any irregularities relating to compensation paid by Americanas to former Chief Government Sergio Rial, who took over the corporate simply 9 days earlier than the scandal broke and resigned shortly thereafter.

The launch of the probes comes a day after Americanas’ former CEO Miguel Gutierrez testified earlier than CVM.

(Reporting by Carolina Pulice and Andre Romani; Modifying by Chris Reese)