Estrela Files for Judicial Recovery to Restructure Debt

Overview

• Estrela filed for judicial recovery on Wednesday, May 20, 2026, by lodging a petition in the Comarca de Três Pontas, Minas Gerais, that covers eight group companies.
• The company blamed years of pressure from high borrowing costs, tighter bank credit, stronger import competition and shifts to digital entertainment for weakening its finances.
• Estrela says industrial, commercial and administrative activities will continue and that current managers remain in charge while it prepares a court‑approved recovery plan to present to creditors.
• The filing reports about R$109.1 million in indebtedness and pauses certain creditor actions while negotiations and court review proceed at an early stage.
• The case highlights wider strain on Brazilian manufacturers from prolonged high interest rates and import competition, and key next steps to watch are creditor votes, court validation of the plan and any operational changes that could affect factories and jobs.