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Agreement seeks to access a preferential fresh financing option for $ 10 billion.
A little over a month ago, Multistores Corona underwent a reorganization process because it was unable to operate normally due to the losses generated by the health crisis and the social outbreak of last year. However, this Thursday the firm entered the court a payment proposal for creditors with which they ensure the future viability of the company.
As reported, the formula to pay the company’s debts involves a restructuring and ad hoc payment method, which includes grace periods and interest. “The proposal seeks to maintain and strengthen Corona’s commercial operations, through a payment schedule that is in line with the company’s flows, without putting its continuity at risk.“said the company through a statement.
Likewise, the Schupper brothers, who control 100% of the company in equal parts, They agree to extend and lower a series of royalties related to the rental of premises used by Corona, as well as other credits, all of which involve more than $ 16 billion.
The payment of the entire capital of the credits in the case of secured creditors, according to the document presented to the court, must be paid by Corona through 18 quarterly and successive installments. The interest accrued on the capital balance from the day the Deliberative Meeting is held, They will be paid on March 30, June 30, September 30 and December 30 of each year, starting on December 30, 2020.
For the Provider value creditors is proposed as a new term structure for the amortization of 100% of the capital of the credits in a term of up to 12 months counted from the celebration of the Deliberative Meeting.
Also, the payment agreement adds that within twelve months from the creditors’ meeting, Corona may be subject to new financing of up to $ 10 billion, in a loan with a term of up to five years, with at least 12 months of grace for the capital
For their part, shareholders also agreed generate the conditions that facilitate the sale of the company, This guarantees its operational and commercial continuity, strengthens the payment capacity and would allow maintaining hundreds of jobs from Arica to Punta Arenas. The agreement must be voted and approved at a meeting of creditors to be held on October 9.
Through a statement, Cristián Fuenzalida, general manager of Corona said that “we have been able to verify, after weeks of conversations with our creditors, that Corona’s strategy and business model, which focuses exclusively on the Clothing, Footwear and Telephony (Model VCT), omnichannel and an open credit card, are the correct and adequate to resume the successful path of Corona “.
The process is being led by the lawyer Nelson Contador and his study.
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