Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Chile Pension Fund Expects to Recoup La Polar Investment

June 28 (Bloomberg) -- AFP Habitat SA, Chile’s second-largest pension fund manager, said it expects to recoup its investment in Empresas La Polar SA, the retailer under investigation for consumer-credit irregularities.

Habitat, which manages about $39 billion of assets, has maintained its minority stake in La Polar even as the stock tumbled as much as 80 percent after the department-store chain revealed on June 9 additional loan-loss provisions, Chairman Jose Antonio Guzman said today in an interview in London.

La Polar surged as much as a record 38 percent in Santiago trading today after entrepreneur Alvaro Saieh bought a 10 percent stake and said he may buy more shares pending the outcome of talks with lenders.

“It’s very good that a controlling shareholder enters the company to put an extra eye on the administration,” Guzman said. “We trust that the investment we have will be recovered - - not immediately, but in the medium term.”

La Polar said this month executives restructured 475 billion pesos ($1 billion) of overdue credit without the consent of the more than 400,000 customers involved, triggering regulatory and criminal probes.

La Polar will meet with bondholders tomorrow to discuss waiving covenants that would accelerate prepayments. That probably will enable La Polar to avoid defaulting on its debt payments, Guzman said.

“The company has potential and we are doing all we can as investors so that the company can be re-established,” he said.

To contact the reporter on this story: James Attwood Jattwood3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.