JSM Global’s 4.75% dollar bond due 2030, guaranteed by Brazilian retailer Lojas Americanas dropped by a massive 35 points to trade at 34 cents on the dollar after accounting “inconsistencies” saw the resignation of its newly appointed CEO. While the exact size of these inconsistencies were not known, it is expected to run into several billions of dollars. Among the issues that were found were debts with banks from supplier financing operations that were not adequately reflected in its financial statements as of September 30. Morgan Stanley analysts said, “We have limited visibility on the extent of the accounting inconsistencies”, while a former Santander analyst noted that the company took on more debt than assumed by the market, thus requiring it to shore up its capital.
Americanas’ Dollar Bonds Drop 35 Points on Accounting Gaps
