Brazil's GPA strikes deal with creditors to halve obligations

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Brazilian retailer GPA BMFBOVESPA:PCAR3 has reached a deal on a new out-of-court debt restructuring plan with creditors holding 57.49% of claims covered by the proposal, totaling 4.57 billion reais ($930.30 million), the company said late on Tuesday.The plan targets a reduction of more than 50% in total obligations over time, GPA said in a securities filing.Upon confirmation, averag maturity will be extended to 6.4 years; average cost cut to CDI +0.5% per annumPlan includes up to 1.1 billion reais in convertible local debt instruments known as debentures, with four conversion windows in first-half 2027, 2029, 2030, and 2031New financing of up to 200 million reais to be provided by participating creditorsPlan expected to reduce GPA's disbursements by more than 4 billion reais over the next two yearsGPA, which runs supermarket chain Pao de Acucar and has long struggled with high debt levels, had first filed for out-of-court restructuring in MarchGPA shareholders include the Coelho Diniz family and France's Casino EURONEXT:CO($1 = 4.9124 reais)

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