Mrs,
ESSENTIAL FACT
COMPANIES LA POLAR S.A.
REGISTRATION IN THE SECURITIES REGISTRY NO. 806
Santiago, February 24, 2023
Solange Berstein Jáuregui
President
Financial Market Commission
Av. Libertador Bernardo O’Higgins N° 1449
Santiago
From our consideration:
On behalf of Empresas La Polar S.A. (hereinafter, the “Company”), by virtue of the provisions of Article 9 and the second paragraph of Article 10 of Law No. 18,045 on the Securities Market, and numeral 2.2 of Section II of General Standard No. 30 of the Financial Market Commission, Being duly empowered by the Board of Directors at a meeting held on February 23, 2023, I hereby inform the following as an essential fact:
On September 5, 2021, it was reported as an essential fact that H.E. The Supreme Court had upheld an appeal in cassation on the merits filed by Administradora de Fondos de Pensiones Capital S.A. (hereinafter, “AFP Capital”) against the resolutions of the 13th Civil Court of Santiago (the “Tribunal”) and the Illustrious Court of Appeals of Santiago in case Rol C-15102-2011 (the “Case”), ruling that the Company and other defendants should indemnify AFP Capital. The final amounts to be compensated to AFP Capital were reserved for the stage of compliance with the Court’s ruling.
On December 22, 2022, it was reported as an essential fact that the Company and AFP Capital had signed a document called “Agreement on Partial Settlement, Withdrawal and Payment” (the “Agreement”) by which they agreed, among other terms and conditions, that the amount to be compensated to AFP Capital will be the single and total amount to be judicially determined by the Court, without considering costs (the “Settlement of the Compensable Amount”).
On February 9, 2023, the Court ruled that the Liquidation of the Compensable Amount as of that date corresponds to 15,497,098,948 pesos. This judicial resolution was not objected to, being as of February 21, 2023 definitively determined the Liquidation of the Compensable Amount in that amount. It should be noted that the first settlement of the patrimonial damages made by the Court on October 18, 2022 determined that they amounted to the amount of 22,038,466,132 pesos, an amount that was reduced as a result of the objections, background and allegations that the Company asserted to the Court.
In accordance with the provisions of the Agreement, on December 30, 2022, the Company paid 500,000,000 pesos to AFP Capital, charged to the Liquidation of the Compensable Amount.
The balance of the Liquidation of the Indemnifiable Amount will be paid by the Company in a single installment on the fifteenth anniversary counted from December 22, 2022 (the “Original Maturity Date”), accruing a fixed annual interest rate of UF + 0.3%, without prejudice to the obligation to make advance payments, if applicable, informed in the essential fact sent by the Company on December 22, 2022.
In the event that on the eighth anniversary counted from December 22, 2022, the amount of the Liquidation of the Compensable Amount has been paid at least 30%, the obligation to pay the principal owed will be extended to the twentieth anniversary counted from December 22, 2022, and the balance of the principal owed from the Liquidation of the Compensable Amount will accrue a fixed annual interest rate of UF + 1.0%.
The rest of the terms and conditions for the payment of the balance of the Settlement of the Compensable Amount are set forth in the Agreement, already informed.
Additionally, it is reported that in compliance with the provisions of the Agreement, the judicial attachment referred to in the aforementioned essential fact of December 22, 2022 was lifted by the Court.
In consideration of the terms and conditions established in the Agreement for the payment of the Indemnifiable Amount, no other financial effects on the assets, liabilities or results of the Company are expected.
Yours faithfully yours faithfully,
Manuel José Vial Claro
Vice Chairman of the Board
Empresas La Polar S.A.
Link to file in CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=ea96eb4d516d5b07161d03c35f955ddcVFdwQmVVMTZRWGxOUkVFMFRrUnJNRTlSUFQwPQ==&secuencia=-1&t=1682376108
