Santiago. Corp Group Banking, a holding company linked to Grupo Saieh that operates mainly in the Insurance and Banking sector in Chile, defaulted on the interest payment of US $ 17 million corresponding to a bond to 2023 of US $ 500 million, which had expired on September 15 and The 30-day period to correct it ended this Thursday, according to the newspaper El Mercurio Inversiones.
The publication assures that the group will be declared in default by the rating agency S&P Global Ratings, although this would not mean an acceleration of the payment.
Last week S&P cut its issuer and unsecured debt rating to ‘CC’ from ‘CCC-‘ with a negative outlook.
“We are lowering our ratings on CG Banking to ‘CC’ from ‘CCC-‘ because we believe that the result of the restructuring results in a default in our opinion,” the agency said.
The company, which owns 26% of Itaú Chile, hired consultants to reorganize the financial and debt structure of the holding company amid the uncertain scenario for the local economy.
The firm announced the restructuring on August 31 and reported on September 15 that they were still in negotiations.
A group of bondholders informed El Mercurio Inversiones that until this Wednesday they had not received proposals for debt restructuring.
The publication adds that bondholders would wait up to two weeks before accelerating payment, while evaluating the so-called “corporate veil” as a legal strategy that allows them to seek collateral from companies such as SMU (Unimar supermarkets and others) and VivoCorp.
Corp Group Banking wants the bondholders to sign a confidentiality agreement to deliver the restructuring proposal, but the bondholders do not want to be restricted by that clause, the publication said.