Creditors Approve La Polar Restructuring

Chilean retailer Empresas La Polar’s creditors have agreed to restructure about $900m in debt, helping the company avert bankruptcy. The move calls for a $220m equity capital increase, allowing La Polar to move forward in the restructuring process. In June, La Polar disclosed it overcharged clients for past-due store credit card bills and was setting aside nearly $1bn in loan-loss provisions. Authorities are investigating La Polar for raising interest rates, and charging delinquent fees to more than one million clients without negotiating new contract terms. It also allegedly managed two separate accounting books and gave regulators false financial information. Lazard is advising la Polar.