Chile Car Dealer Misses Coupon, Agrees to Debt Restructuring

Automotores Gildemeister SA, a Chilean car dealer, agreed to cede options to buy 40 percent of the company to its bondholders as part of a restructuring of debt. The company failed to pay a coupon on its 2021 bonds that was due Tuesday, Bloomberg News reported. Gildemeister reached a preliminary agreement with holders of about 70 percent of its $700 million in dollar bonds due in 2021 and 2023 to swap the notes for new bonds guaranteed by real estate and other assets, according to an e-mailed statement. The deal also involves issuing preferential shares and rights to acquire 40 percent of the car dealer’s common shares. The company, which holds the concession to import and sell Hyundai vehicles in Chile and Peru, will continue with normal operations, it said in the statement. The company’s bonds have given investors one of the worst returns in the region this year, amid the economic slowdown and weakening currency. The car importer’s bonds have lost investors 34 percent in the past 12 months. Read more.