Bloomberg News

Chile’s La Polar Surges After Company Says It Has Adequate Cash

April 17, 2012

Empresas La Polar SA (LAPOLAR), the Chilean department-store operator seeking to avert its second bankruptcy in 13 years, rose for a fifth day after the company said it has enough cash to fund operations this year.

La Polar rose 14 percent to 442.01 pesos at 1:21 p.m. in Santiago, following a 15 percent jump yesterday. It has more than doubled in the past month.

Chairman Cesar Barros touted the company’s cash levels as well as its operations in Colombia in a letter to shareholders posted on its website. The retailer also said it may have to return about $21 million to 140,000 customers who were overcharged for credit.

The company’s revenue from Colombian stores rose more than fivefold in 2011 from a year earlier, according to a statement sent April 5 to Chilean regulators.

La Polar is scheduled to host its annual shareholder meeting on April 27. The company is seeking to sell as much as $220 million in new shares, according to the letter.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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