Local bondholders of Brazilian supermarket chain GPA have hired Moelis & Co as a financial adviser following the company's decision to restructure its debt through an out-of-court proceeding, according to sources familiar with the matter. This move comes as GPA faces mounting pressure from creditors to address its financial obligations without resorting to formal bankruptcy proceedings.

The engagement of Moelis & Co signals that GPA's bondholders are taking a proactive approach to managing the restructuring process. By bringing in a specialized financial adviser, the creditors aim to navigate the complex negotiations and ensure their interests are protected during the debt restructuring talks. This strategy allows GPA to avoid the public scrutiny and potential market disruption that often accompanies formal bankruptcy filings.

For GPA, the out-of-court restructuring represents an attempt to maintain operational stability while addressing its debt challenges. The supermarket chain's decision to work directly with bondholders through this process suggests a desire to reach a mutually beneficial agreement without the time and expense of court-supervised proceedings. The involvement of Moelis & Co could prove crucial in facilitating productive discussions between GPA and its creditors as they work toward a resolution.