Empresas CMPC S A : Material Fact - January 7, 2021
January 07, 2021 at 06:56 pm EST
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Santiago, January 7, 2020
Mr. Joaquín Cortez Huerta
President
Financial Market Commission
By messenger
MATERIAL FACT
Empresas CMPC S.A.
Securities Registration No. 115
Dear Mr. Cortez:
Please be advised of the following material information pursuant to article 9 and the second paragraph of Article 10 of the Securities Market Law:
As was reported promptly and appropriately, in 2017, the Company gave notice of the stoppage and repair of the recovery boiler of the Guaiba 2 pulp plant in the State of Rio Grande do Sul in Brazil that had been damaged at the start of that year. Then in October 2017, it was also disclosed that Mapfre Seguros Gerais S/A had denied coverage of this loss, upon which the Board gave instructions to take the legal actions to collect the indemnities under the existing policies. As a consequence, the Company filed a Request for Arbitration before an Arbitral Tribunal constituted under the rules of the Brazil-Canada Chamber of Commerce.
Today, the CMPC Board learned of the partial ruling against the insurer by the Arbitral Tribunal, which is hearing the arbitration claim filed by CMPC, whose award declared that such loss is effectively covered by the policy in effect at the time of the loss.
The Court of Arbitration has left the definition of the scope and assessment of the damages incurred in the loss to be indemnified to CMPC for discussion at a later date, so at this time, it is not possible to estimate the financial impacts of this ruling.
Sincerely yours,
Francisco Ruiz-Tagle Edwards
Chief Executive Officer
Empresas CMPC S.A.
Santiago Stock Exchange Electronic Exchange of Chile Brokers Exchange
Agustinas 1343, Santiago Chile
Teléfono (56-2) 244 12 000
www.cmpc.cl
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Empresas CMPC SA published this content on 07 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 January 2021 23:55:02 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. 
