Casas Bahia debenture plunges 91.55% after filing

Debt securities issued by Casas Bahia lost almost all their market value after the Brazilian retailer filed for judicial recovery, according to data from pricing firm POP, a unit of LUZ Soluções Financeiras.

The company's BHIAB1 debenture fell to BRL 0.31 after the judicial recovery filing announced on August 17. That price represented just 8.45% of the bond's reference par value, translating to a loss of 91.55%. Between August 19 and August 24, the paper recorded 26 transactions totaling more than BRL 5 million, trading at an average of 10.16% of reference value.

The debenture had already been weakening prior to the formal filing. The peak price for BHIAB1 in 2026 stood at BRL 1.64 in February, which was already just 44% of its par value. Up to August 17, the bond had traded at an average price of BRL 1.25 across 212 transactions that moved BRL 263.45 million, making it the most traded Casas Bahia bond in the survey.