Empresas CMPC S A : Material Fact - Guaiba II Insurance Update
January 06, 2023 at 04:22 am IST
Share
Santiago, January 5th, 2023
Comisión para el Mercado Financiero
MATERIAL FACT
Empresas CMPC S.A.
Securities Registry Number Nº115
Dear Sirs:
Pursuant to what is laid down in articles 9 and 10, second paragraph of the Securities Market Law No. 18.045, I hereby inform the following as a Material Fact:
In August 2017, the Company reported the stoppage and repair of the recovery boiler of the Guaíba 2 pulp mill in the State of Rio Grande do Sul, Brazil, which was damaged as a result of an incident that affected it earlier that year.
Subsequently, in October 2017, the Company reported that the insurer Mapfre Seguros Gerais S/A had denied coverage for the loss, for which the Company filed an arbitration claim in Sao Paulo, Brazil.
The decision of the Arbitral Tribunal was made public in January 2021, in which it ruled that the indicated loss was covered by the contracted policy, leaving for a later discussion the extension and valuation of the damages to be compensated to CMPC.
On this date, the Board of Directors learned of and approved an out-of-court settlement reached with the insurer and reinsurer of the claim, through which CMPC will be indemnified for the physical damages and loss of profits suffered as a result of the incident, for a total amount of 215 million dollars, which at the time of payment will be subject to the deduction of the corresponding taxes.
Once the described agreement is in full and complete compliance the arbitration process will be terminated, thus closing the indicated claim.
Sincerely,
Francisco Ruiz-Tagle Edwards
General Manager
EMPRESAS CMPC S.A.
Attachments
Original Link
Original Document
Permalink
Disclaimer
Empresas CMPC SA published this content on 05 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 January 2023 22:51:21 UTC.
Empresas CMPC SA is a Chile-based company primarily engaged in the paper products industry. The Companyâs activities are divided into five business segments: Forestry, which includes products that are logs for the manufacturing of cellulose pulp and solid lumber products, such as sawn lumber, remanufactured products and plywood boards; Pulp, which provides pulp manufactured in production lines in Chile and Brazil; Paper, which focuses on the production and marketing of cardboard, paper for corrugation , industrial-use paper and newsprint; Tissue, which is responsible for producing and selling tissue, sanitary and specialized hygienic products, such as toilet paper, napkins, baby diapers and facial tissues, and Other, which includes general administrative services. The Company operates in Argentina, Colombia, Mexico, Peru and Ecuador, among others. It controls a number of subsidiaries, such as CMPC Celulosa SA, Cartulinas CMPC SA, Chimolsa SA La Papelera del Plata SA.
EMPRESAS CMPC S.A. 
