Chilean court gives Enjoy more time over bankruptcy protection
Enjoy has announced that the 8th Civil Court of Santiago has approved a request for a 30-business day extension of bankruptcy protection. As a result the company’s financial protection has been extended from June 18, 2024, to July 26, 2024, the new date on which the deliberative meeting will be held.
Via “un hecho esencial” (essential fact) addressed to the Financial Market Commission (CMF) and signed by Enjoy’s general manager, Esteban Rigo-Righi, the company stated: “The 8th Civil Court of Santiago, in case number C-1590-2024 titled ‘ENJOY S.A.’, approved a request for a 30-business day extension of financial protection under Article 58 of Law No. 20.720 on Reorganization and Liquidation of Companies and Individuals, starting from the expiration of said protection.”
In Chile “un hecho esencial” refers to any event or information that can have a significant impact on a company and must be publicly disclosed to ensure transparency and protect the interests of investors.
“This extension request is based on the need for more time to finalize the last details of the ongoing conversations with creditors, and thus, implement a long-term plan that allows the Company to maintain operational continuity as part of the Judicial Reorganization process initiated in January of this year,” the company went on to say.
In mid-May, and when the proposed restructuring agreement was presented, the president of Enjoy Jaime Maluk explained the details of the plan.
“The plan considers the restructuring of obligations, the sale of operations, and the raising of new resources to finance operations in the short term. What we propose seeks to responsibly sustain our commitments to suppliers, customers, shareholders, and communities where we are present, as well as with our 5,300 employees,” he said.
In January, the company announced that it was going through another restructuring. Enjoy outlined a number of reasons for not reaching its growth projections including “liquidity constraints and the slow post-pandemic recovery, which had greater complexities than initially anticipated.” During the years 2020-2021, it had carried out a successful restructuring programme which had allowed it to address the problems in its operation arising from the social unrest and later the Covid-19 pandemic. This procedure ended in 2022 Enjoy said.
