Sunday , June 13 2021

The parent of the Bank of Chile has set the date for the initiation of plans for its settlement

The last remnant of the 1980s crisis is on its way. SM Chile, the parent company of Banco de Chile, provided last year everything that remains to pay the famous subordinate debt that dragged along with the Central Bank.

In addition, they sent a major fact today to the Financial Market Commission (CMF), where it announced the date on which all issues related to the winding-up and liquidation of this company would be determined: March 28.

On this day, the ordinary meeting of the shareholders of JI Chile will be held and an extraordinary meeting will take place. The latter will deal with the appointment of a SM Chile Liquidation Commission, its functions, remuneration and the form and period within which the shares of Banco de Chile, owned by the company and the property of the mother, will be distributed among the shareholders of the parent company. of the subsidiary SAOS SA which are pledged in favor of the Central Bank.

Currently, the Management Company of the Subordinated Liability (SAO) pledges to the central 28 593 701 789 shares of Banco de Chile, which equals 28.75% of the property. In this way SM-Chile shareholders will become direct shareholders of Banco de Chile, where the B Series will receive an action from the bank, with an opportunity to have another 2,38 titles.

The Enterprise, controlled by Citibank and the Luksic Group, has maintained its obligation since 1996, and in recent years the resources provided to the Central Bank are well above the agreed one.

Indeed, in the last letter to the shareholders of SM-Chile's annual report for 2017, the financial institution's parent, Andrónico Luksic, administrator of the Banco de Chile, was already confident in the abolition of the subordinated debt in April this year. 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.

22 years Banco de Chile pays contributions, but this year (number 23) this may end. This day will be historic to the enterprise but will also lead to changes: SM-Chile companies and their subsidiary administrator SAOS SA will be discontinued as both are constituted exclusively to undertake the management and payment of obligation.

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