Thursday , June 24 2021

SM Chile calls on the board to plan its dissolution before the upcoming subordinated debt




The end of the cycle is to be produced in Chilean banking. SM-Chile, the parent company of Banco de Chile, the last of the five banks that still have a subordinate debt to the Central Bank, yesterday called an extraordinary session to begin its dissolution with the end of its debt.

In the eighties, the issuer came out to save the banks after the financial crisis of 1982, and it was the company controlled today by Citibank and Luksic's group that was the only one of the banks to choose a different way to make the payment that they chose to do in 40 installments.

Against this background, a debt of 57 million UF, unemployed in the 1990s, has a difficult target.

Nevertheless, the historic subordinated debt may end in April 2019, as in recent years the Bank has provided resources to the Central Bank, which are far above the agreed ones.

Moreover, although in 2016 the bank proposed to pay everything in advance, the Central Bank rejected the offer.

In any case, in the last letter to the shareholders of SM Chile's annual report, Andrónico Lukšić, administrator of the Banco de Chile, was already confident that it would end in 2019, 17 years before the final deadline (2036).

Luksic's goal is as planned: SM-Chile last year provided all the resources it needs to pay off the remaining UF 3.1 million (approximately $ 84.5 million) to be repaid, and repay the debt to the issuer institute. Indeed, the provision was already made in the third quarter of 2018, as according to the latest financial reports reported by SM Chile, it had $ 86,802,495 in September as a provision for that purpose.

But yesterday was the official announcement: SM Chile sent an important fact to the Financial Market Commission (CMF), where it will inform the date on which it will define all issues related to the winding-up and liquidation of this company, which will happen on March 28th. ,

The above, given that when the bank repays the 23rd installment in April, it will be a historic day, but will also lead to changes: SM-Chile and its subsidiary SAOS SA will be disbanded as both are constituted exclusively to take over the management and payment of the obligation.

Against this background, a regular meeting of the shareholders of JI Chile will take place on 28 March and an extraordinary meeting will take place.

At this last meeting, the appointment of the CM Libya Liquidation Commission, its functions, the remuneration and the manner and the time at which the shares of Banco de Chile, owned by the company and those of the company, will be distributed among the shareholders of the parent company will be discussed. owned by the subsidiary SAOS SA which are pledged in favor of the Central Bank, i. 28,593,701,789 shares of Chile, which equals 28.75% of the property.

In this way, the shareholders of JI Chile will become direct shareholders of the Bank of Chile, where Series B will receive action from the bank, with an opportunity to have another 2,38 titles.


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