Casas Bahia (BHIA3) Terminates Association Agreement with GPA

Under the agreement, GPA's right to receive from Casas Bahia amounts equivalent to part of the tax credits arising from the exclusion of ICMS from the PIS and COFINS calculation base, estimated at about R$ 700 mi, will be extinguished. Casas Bahia may use these credits, in accordance with applicable law, with no obligation to pass them on to GPA. In return, the company will assume the contingencies related to the Association Agreement, including tax debts with an approximate nominal value of R$ 424 mi.

Casas Bahia's R$ 231.8 mi credit against GPA, recognized in arbitration proceedings, remains due. It will be paid under the terms of GPA's out-of-court reorganization plan, through the payment option elected by the company (Option A). The enforcement of the judgment remains suspended until the securities provided for in the plan are subscribed.

GPA will remain responsible for the tax installment payments tied to the Association Agreement and will pay the installments directly. It will also reimburse Casas Bahia for certain expenses related to guarantees and the handling of proceedings. The parties made reciprocal commitments to cooperate and not to litigate.

Casas Bahia states that the agreement helps reduce future litigation costs and provides greater legal certainty and financial predictability. The company considers it a relevant measure to optimize its liability structure and will keep the market informed of any developments.