Microplay files for bankruptcy for the third time

Microplay hopes that the third time is the charm. Although the 11th Civil Court of Santiago had already twice rejected the store’s bankruptcy applicationFor video games and electronic products, the company’s lawyers are going for a new chance.

The company had indicated to the court that its liabilities exceeded $5.7 billion, while its assets did not reach $4 billion. However, the court argued that her financial situation did not constitute insolvency and that, furthermore, the debtor did not have any pending lawsuit with property effects against her.

Microplay waited and went back to court. Nelson Contador, lawyer representing the company, revealed before the court that there are already seven lawsuits pending against the store: five of them are for debts with other companies and the remaining two are labor lawsuits by workers.

“These lawsuits filed against Microplay SA after the resolution dated January 18, 2023 that denied processing the Company’s Voluntary Liquidation request, constitute new precedents that rectify that additional requirement that, in SS’s opinion, did not allow originally give effect to the request of my client,” said Contador.

The debts

The company reminded the court that it had had to request its liquidation due to the blows caused by the social outbreak and the pandemic, which added to the economic crisis and the poor projections for the retail industry due to the contraction in consumption.

Since that date, Microplay said, “The state of cessation of payments regarding obligations of a diverse nature continues and is aggravated by the delay in declaring the Liquidation of the Company.”

One of the legal proceedings against the store comes from BCI, an entity that at the beginning of January indicated that it had stopped paying credit installments from the video game firm. “For principal alone,” Microplay owes it more than $377 million, the bank noted.

Along the same lines, Fujicorp indicated to the court that the company had an outstanding capital balance of $251 million with it; Intcomex reported a debt of almost $60 million, and Air Ocean Cargo charged unpaid invoices for over $97 million.

Prior to this, 77 Microplay workers had asked to join the cause, arguing that the company’s inactivity was affecting them. Last week, MB CSCC, the company’s supplier, did the same, also pointing to outstanding debts.

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