The São Paulo court has granted the GPA, the controlling entity of the Pão de Açúcar supermarket chain, its request for extrajudicial recovery in light of significant debts totaling R$ 4.5 billion. This decision was made by Judge Guilherme Cavalcanti Lamêgo, who noted that 46.26% of the relevant creditors have approved the recovery plan. The acceptance of this recovery plan is critical for GPA as it seeks to stabilize its financial situation amidst ongoing economic challenges.

In his ruling, Judge Lamêgo mandated a suspension of debt collections exclusively related to the debts included in the recovery plan for a duration of 180 days. This order covers various legal actions including lawsuits and executions against GPA, as well as any judicial or extrajudicial asset restraining measures. The suspension is aimed at giving GPA some breathing room to implement its recovery strategy without the pressure of immediate debt collections.

Furthermore, the court has instructed that the relevant federal, state, and municipal tax authorities be notified about this decision, allowing them an opportunity to contest the recovery plan within a 30-day period if they wish. This step underscores the comprehensive nature of the recovery process and the various stakeholders involved, indicating the potential implications for GPA's operations and its relationships with creditors and tax authorities.