A São Paulo court has granted Grupo Gennius, the parent company of Habib's and Ragazzo, a 60-day suspension of debt collection proceedings.
The ruling allows the restaurant group to renegotiate approximately R$312.4 million (about US$58 million) in liabilities without immediate enforcement actions from creditors.
The precautionary protection marks a critical juncture for the operator, which faces significant liquidity headwinds.
By securing this temporary shield, management aims to buy time to restructure its balance sheet and reach a consensus with lenders on revised payment terms.
The move underscores the financial strain on mid-sized Brazilian consumer-facing businesses navigating a challenging credit environment.
This development adds to a broader narrative of corporate restructuring in Latin America, where companies are increasingly seeking judicial or out-of-court mechanisms to manage debt burdens.