By: Vitor Ferrari and Ivan Kubala

Undergoing judicial recovery for around 4 years, the traditional Livraria Saraiva took what could be its last step as a recovering company: it managed to approve, together with a group of creditors, the conversion of its debts subject to judicial recovery into shares.

The company has been divesting assets in the hope of generating the capital needed to pay off its creditors: in June, it sold the store it owned in Ibirapuera Shopping Mall, in addition to transferring tax credits to an investment fund, enabling a significant portion of its debt to be paid off.

Now, with the proposed conversion into shares, the company will distribute approximately R$163 million in shares, which will reduce the effects of debts on its future balance sheets. With this capital injection, Livraria Saraiva will have approximately R$300 million in debts subject to judicial recovery, an amount less than half of the debts with which the company started 2022.

However, a significant portion of the creditors did not accept receiving the credits in this way, since the company will have its capital dispersed on the Stock Exchange, without there being a large shareholder. These creditors, according to the plans of the company under recovery, will be paid from 2026. With the agreement of a large portion of the creditors, the company was able to better restructure its debts and manage its cash flow according to its financial needs.

As a result, internal sentiment improved and the company once again aimed to expand within its niche, since in addition to this good news, the company has been reducing its monthly losses.

With the collaboration of Luis Felipe Simões