With a R$295 Million Debt, in Brazil, Sequoia (SEQL3) Files for Judicial Reorganization; Here’s What You Need to Know

The Market Analytics platform from SiiLA monitors Sequoia’s occupancy in nine logistics facilities in Brazil, of which eight are classified as A+ or A, and one as Class B. 

According to market sources, Sequoia is already exiting Cy.log Embu, a high-standard asset with a market value of R$28.51/m², located near São Paulo’s capital. 

Other Sequoia-occupied facilities include Armazenna 2 Centro Logístico, developed by GL Empreendimentos in Pernambuco, and Prologis Dutra – RJ, part of the Prologis portfolio. 

The plan does not include labor, bank, or debenture debts, nor obligations of the Move3 Group companies. The judicial reorganization plan, approved by about 55% of creditors, offers suppliers several settlement options: 

• Equity Conversion: Creditors can convert their debts into Sequoia shares at R$8.00 per share. 
• Installment Payments: Payment in 36 monthly installments, starting after a 60-month grace period. 
• 70% Reduction: Payment of the balance in 84 monthly installments, beginning after a 12-month grace period. 
• 50% Reduction: Payment of 2/5 of the balance upfront, followed by 3/5 in 15 monthly installments. 
• 70% Reduction with Lump Sum Payment: Full balance payment within 30 days of court approval. 

In sponsored content published by Sequoia in Valor Econômico, the company disclosed that it began debt restructuring with financial and capital market creditors—including banks and debenture holders—in October 2023. 

The company managed to negotiate bilateral reductions of approximately R$750 million, achieving an 82% reduction with R$582 million converted to shares and the remaining amount extended. 

Currently, Sequoia aims to stabilize its financial position and resume growth, according to the statement. In Q2 2024, the company reported a loss of R$118.8 million. The group expects to refocus on operations, aiming for a strong market recovery. 

When contacted, the company’s press office stated that it would not provide interviews at this time.