El Mercurio Secures $40 Million Refinancing Deal With Consorcio

Edwards del Río family secures US$40 million rescue

The Edwards del Río family has finalized a US$40 million financing agreement with Consorcio to refinance the total liabilities of the El Mercurio newspaper group. Signed on September 28, the deal consolidates the organization’s fragmented debts into a single credit facility, granting a three-year grace period on principal payments.

Consolidating debt under a new credit line

The agreement provides a credit line exceeding 900,000 UF. By shifting obligations from a mix of banks, factoring firms, and suppliers into one instrument held by Consorcio—a group owned by the Hurtado Vicuña, Fernández León, and Garcés Silva families—the publisher seeks more favorable interest rates and operational breathing room.

As reported by DF MAS, the move addresses a period of acute financial distress for the publisher of El Mercurio, Las Últimas Noticias, La Segunda, Emol, Radio Universo, and various regional outlets. The group had previously confronted legal actions ranging from demands for unpaid social security contributions to requests for asset seizures and distribution disruptions.

Loan plan offers three year grace period

The structured plan offers a three-year window where no amortization installments are required. Once this period expires, the group must prepay roughly 30% of the loan, with the remaining balance amortized over 20 years. This timeline is designed to allow the media organization to stabilize core operations and revise its long-term business strategy.

Real estate assets as collateral

Inversiones El Oriente, the Edwards family holding company, has pledged a portfolio of real estate assets to back the financing. The primary guarantee is a 20-hectare undeveloped plot in Vitacura, located behind the current El Mercurio facilities and bordering Saint George’s College, El Carbón hill, and the Club de Polo Golf.

While the agreement encompasses various properties in Santiago and regional centers, the Santa María de Manquehue site—which houses the newspaper’s headquarters and editorial offices—is notably excluded from the collateral package.

The challenge of digital transition

The success of the restructuring hinges on the company’s ability to use the three-year grace period to overhaul its media model.