Brazilian securities watchdog launches new probes into Americanas accounting fiasco

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

CVM mentioned it launched an administrative continuing to investigate “failures to reveal related data by (Americanas) concerning 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 price 20 billion reais ($3.78 billion) and total debt of greater than $8 billion. CVM and different Brazilian authorities have since launched investigations.

Earlier this month, the retailer mentioned 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 concerning compensation paid by Americanas to former Chief Govt 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.