Alliança Saúde Seeks to Restructure R$ 1.1 bn Debt

What Is Alliança Saúde Asking the Court to Do?

On Wednesday, August 5, Alliança Saúde filed a request with the 2nd Bankruptcy and Judicial Recovery Court of São Paulo to ratify its out-of-court restructuring plan. Under Brazilian law, an extrajudicial recovery plan is negotiated directly with creditors and then submitted to a judge solely for formal approval — a faster and less invasive route than full judicial recovery.

How Much Debt Is on the Table?

The plan covers roughly R$ 1.1 billion in liabilities. More than 83 creditors have already signed on, including banks, suppliers, service providers, and landlords of properties and equipment leased by the group. Together they represent about 54% of the total debt included in the plan — enough to meet the legal quorum required for court ratification.

What Options Are Creditors Being Offered?

• Debt-to-equity swap: Creditors can exchange their claims for shares in Alliança Saúde (ticker AALR3 on B3). Over 92% of the debt held by creditors who have already joined will be converted into equity. As of August 5, AALR3 shares were trading at R$ 3.15, down roughly 37% year-to-date.
• Instalment plan: 30% of the debt paid in 11 annual instalments after a one-year grace period; the remaining 70% would be written off.
• Lump-sum option for smaller creditors: Payment of up to R$ 15,000 in a single instalment within 180 days of ratification.

The plan also includes tailored terms for strategic suppliers and landlords of premises rented by the company, to preserve key commercial relationships.

Why Did Alliança Need a Restructuring?

According to the company, the financial restructuring was initiated following a change in control of the group, which owns brands including the CDB laboratory chain. Negotiations with additional creditors are continuing, and the company expects further sign-ons both before and after the court ruling.