Constructora Santafe requested its judicial reorganization and thus avoid bankruptcy

Now it is the turn of the Constructora e Inmobiliaria Santafe. The group –linked to Pablo González and Patricio Vivanco- requested the opening of a judicial reorganization process and thus avoid bankruptcy.

It joins a string of companies in the sector that have had serious liquidity problems, which has been attributed, mainly, to the effects of the pandemic (due to delays in projects due to quarantines) and the rise in the cost of construction materials. the construction. Some companies have decided to file for bankruptcy and others are trying to renegotiate with their creditors, most of them banks, to stay afloat.

This last group includes La Cruz Inmobiliaria y Constructora, owned by the former president of the Chilean Chamber of Construction, Daniel Hurtado, and Marcelo Garrido. Liabilities are close to US$ 80 million and the main creditors are Scotiabank, Consorcio and Santander banks. The negotiation is being led by Capital Trust, linked to Rodrigo Muñoz Vivaldi, and by the law firm of lawyer Luis Felipe Castañeda, both recognized for their extensive experience in resolving financial crisis situations in multiple economic sectors.

“Joining Wills”

The Santafe group is advised by the law firm Alvarado & Elgueta. The reorganization request includes only the construction company, which is called Constructora e Inmobiliaria Santafe. However, Santafe Real Estate is not part of this process: it has another RUT and additional partners.

“Since its creation, the company achieved a significant development of its activities, which suffered a sudden and serious contraction from the so-called social outbreak of October 2019. From this point, the company began an accelerated decline process that was increased dramatically with the effects of the pandemic”, detailed the lawyer Gonzalo Alvarado in his application for the reorganization of the construction company, presented to the court on Wednesday.

He added that the health crisis over the last two years has meant a slowdown or, in many cases, the temporary stoppage of works for long periods.

To all of the above, the lawyer said that the company has had to deal with substantial cost increases of the order of 50% in the value of the inputs required for the activity, as well as the shortage of the supply chain of materials.

“For all of the above, it is impossible for my client to face her financial situation without a substantive collaboration from our creditors and an adjustment in our organization and contracts,” said the jurist.

“It is necessary to initiate a judicial reorganization procedure, in order to restructure its liabilities, uniting the wills of its creditors for this purpose, structurally resolving its financial situation, and thus making the development of its operations and future business plans viable” , he added.

The group was founded in 2005 by former executives from other companies in the real estate and construction sectors. It is estimated that its turnover is around US$ 100 million a year.

In its beginnings, the partners were dedicated to providing real estate and engineering services, since they did not have the necessary resources to build their own projects.

But, shortly after, they managed to increase their turnover, which allowed them to build more than thirty buildings, both homes and offices.

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