The company founded by the architect Abraham Senerman, Sencorp, requested the bankruptcy reorganization due to the debts that it would drag as a result of the complex situation of the real estate market after the social outbreak and the subsequent Covid pandemic.
“We have made a difficult but necessary decision, to start a bankruptcy reorganization process,” announced Grupo Sencorp, through a press release released on Wednesday night.
From the company that today leads Ricardo Senerman, civil engineer and son of the founder, they indicated that the decision was made because “they are experiencing a 35-month earthquake that started with the social outbreak and continued with the pandemic, in addition to internal economic factors and external factors that caused a severe rise in costs, inflation and a brake on demand. Additionally, the sanitary restrictions affected the vacancy in office, parking and commercial leases.”
Total debt is close to $227 billion. Of these, $178 billion are from its investment and income business, and its creditors include Banco del Estado, BCI, Internacional, and Scotia. The other $49 billion are from the investment unit in real estate development projects, and its creditors include Banco Consorcio, Tanner and Logros Servicios Financieros.
The company founded in 1962 is known for being the driving force behind the development of the well-known business district of Vitacura, Isidora Goyenechea, El Bosque and El Golf streets, currently nicknamed Sanhattanwhere its greatest emblem is the Titanium Tower.
Within the framework of the process, one of the briefs presented by the company to the court stated: “With more than 60 years of existence, the Sencorp group of companies is a leader in the development of cutting-edge real estate projects, through the execution of residential projects and innovative, sustainable offices that positively transform the lives of people and the city. (…) Among the most relevant milestones, the development of the financial district of the city of Santiago stands out, where the buildings Industry, Pacific, Costanera Tower, Vitacura Tower, Millenium Tower, El Bosque 500, Titanium La Portada and Titanium Park they make up a postcard for the image of Chile”.
According to the company, this would be “the best decision because they are viable, they have excellent assets and value projects in development that allow them to continue operating and project the company for many more years.”
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The same document detailed that “Sencorp has recognized milestones in the development of residential and rental projects, where it has carried out business in the Metropolitan Region and the Valparaíso Region. In this sense, Vive Alto Reñaca, Urbano Bustamante, Urbano Ñuñoa, Urbano Echeñique, Barrio Parque Santiago and Barrio Parque Curauma, make up a distinctive proposal for the market, thanks to its excellent location and format for current ways of living.”
The judicial process of reorganization has the legal advice of the Carey law firm and in particular Ricardo Reveco, who has extensive experience in this type of process. The request was made in two courts: the 13 and 26 civil courts of Santiago.
In its presentation before the 13th Civil Court of Santiago, the group explained that “the impact of the consequences caused by the social outbreak, the pandemic as a result of Covid-19, and other internal and external economic factors caused a severe increase in costs, inflation and brake on demand”.
Additionally, the sanitary restrictions increased the vacancy in office, parking and commercial leases, considerably reducing income, which has impacted the financial situation of the Company, which has been faced with a ’35-month earthquake’.
“The shareholders have made a great effort evaluating options, looking for financing alternatives and injecting resources, but unfortunately this has not been enough to achieve a global agreement that allows for the restructuring of social debts,” he said.
“Consequently, the Company has made the decision to initiate this procedure as the best alternative to achieve a viable agreement that allows it to fulfill its commitments to its employees, creditors, suppliers, customers and strategic partners that allows the Company to continue developing their activity and get ahead”, concluded his presentation.