Judge approves drugstore operator Brasil Pharma\'s bankruptcy

Judge approves drugstore operator Brasil Pharma's bankruptcy

According to a securities filing, the bankruptcy court has named Deloitte Touche Tohmatsu Consultores as judicial administrator of Brasil Pharma's in-court restructuring and ordered the sale of all of its brands.Reuters  |  June 12, 2019, 15:37 IST
Sterling Biotech, whose promoters Nitin Jayantilal Sandesara and Chetankumar Jayantilal Sandesara are absconding, has a total debt of over Rs 9,000 crore.
Sterling Biotech, whose promoters Nitin Jayantilal Sandesara and Chetankumar Jayantilal Sandesara are absconding, has a total debt of over Rs 9,000 crore.
SAO PAULO: Brazilian drugstore operator Brasil Pharma said on Tuesday a Sao Paulo court judge had approved the bankruptcy request it filed on June 6, when the company warned it could no longer obtain the resources to execute a restructuring plan.

According to a securities filing, the bankruptcy court has named Deloitte Touche Tohmatsu Consultores as judicial administrator of Brasil Pharma's in-court restructuring and ordered the sale of all of its brands.

Brasil Pharma owns three different drugstore chains: Big Ben, Farmais and Farmacia Sant'anna. Difficulties integrating the chains and a rift among shareholders are among the reasons for its bankruptcy, as well as a high level of debt.

The company is currently controlled by Stigma II LLC, which holds a 94.49% stake and is managed by private equity group Lyon Capital.