Oppositional lawmakers in Chile are moving to oust President Sebastian Pinera after the Pandora Papers revealed his involvement in an ethically dubious offshore business deal, The Hill reported. The Chilean president had been “compromising the Nation’s honor and infringing the constitution and the country’s laws,” 17 lawmakers alleged on Wednesday, according to Bloomberg. The move from opposition lawmakers comes amid popular protests against Pinera's government that have surged after the president showed up in the massive leak of financial documents.
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Chile
An association of U.S. businesses in Chile warned on Tuesday that a proposal to allow Chileans to draw money from their pension funds for the fourth time since the coronavirus pandemic began could seriously harm the country's business climate, Reuters reported. Chile's lower chamber of Congress approved the bill late last month, but it faces more resistance in the Senate, where right-leaning lawmakers allied with the administration of President Sebastian Pinera have opposed it. "This new withdrawal of pensions, and particularly of life annuities, ...
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LATAM Airlines Group, the region's largest carrier, said yesterday that it had secured additional financing of up to $750 million, a key step in a bankruptcy protection process the airline initiated in 2020, Reuters reported. LATAM filed for bankruptcy protection in the U.S. in May 2020 as world travel came to a halt amid the coronavirus pandemic. At the time, it was the world's largest airline to take such action due to COVID-19.
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Chile's lower congressional chamber on Tuesday approved a bill that would allow citizens to make a fourth withdrawal from their pension funds, and sent it to the Senate for a vote, despite opposition from the government, Reuters reported. The initiative passed with 94 votes in favor, just one more than the minimum needed, while 39 lawmakers voted against and 9 abstained. Chile's government and the Central Bank have warned that passing the bill would negatively affect the economy, as Chileans further deplete funds meant for retirement.
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LATAM Airlines said yesterday that it has received several offers to fund its exit from chapter 11 bankruptcy, each of which are worth more than $5 billion, Reuters reported. LATAM, the largest airline in Latin America, received the offers from creditors and shareholders, according to a filing with the U.S. Bankruptcy Court in New York City. The Santiago, Chile-based company did not reveal the number of offers received or from whom they came, but Delta Air Lines Inc is LATAM’s largest shareholder. Other shareholders include Qatar Airways, with a 10% stake.
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Chile’s economy beat expectations in the second quarter as billions of dollars in fiscal stimulus triggered a retail sales frenzy during the pandemic, Bloomberg News reported. Gross domestic product grew 1% from the first quarter, more than the 0.7% median estimate from analysts in a Bloomberg survey. The economy expanded 18.1% from a year prior, the central bank reported on Wednesday.
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The part owner of Chilean bank Itau Corpbanca on Thursday secured court approval in Delaware to fend off any potential creditor attempts to collect debts owed as it works to restructure in the U.S., Reuters reported. Corp Group Banking SA (CGB), represented by Simpson Thacher & Bartlett, filed for chapter 11 protection on June 25 to restructure nearly $2 billion in debt. That figure includes $500 million in bonds issued under New York law on which the company has defaulted. CGB, which is controlled by Chilean billionaire Alvaro Saieh, holds 26.2% of the bank’s common equity.
Corp Group Banking SA, a Chilean financial holding company controlled by billionaire Alvaro Saieh, filed for bankruptcy after the coronavirus pandemic sparked an economic slowdown that worsened fortunes in the banking sector, Bloomberg News reported. The Santiago-based company on Friday sought chapter 11 protection from creditors in the Bankruptcy Court for the District of Delaware. The move was expected after the company skipped an interest payment last year on $500 million of 6.75% notes due 2023 and didn’t cure it when a grace period expired Oct. 15.
Chileans flocked for a third time to withdraw money from their retirement funds this week, draining nearly $10 billion from the country's privatized pension system in a move some billed as a lifeline amid a fierce second wave of the coronavirus pandemic, Reuters reported. Chile's Congress in late April approved a bill allowing citizens a third opportunity to withdraw 10% of savings held in privately held pension funds. Many Chileans have already twice tapped their funds since the pandemic struck in March last year, hobbling a system once hailed by free-market economists worldwide.
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Latin American vehicle importer and distributor Automotores Gildemeister SpA has filed for bankruptcy protection in the U.S. with a prepackaged reorganization plan to cut about $200 million in debt, WSJ Pro Bankruptcy reported. The Santiago, Chile-based company, along with 12 affiliates, filed for chapter 11 Monday in the U.S. Bankruptcy Court in New York. The privately held company had warned earlier this month that it would file for reorganization in the U.S. with support from its international noteholders.
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