CREDICORP SUBSIDIARY SETTLES $235M MADOFF-RELATED LAWSUITS

TL;DR

**Credicorp's subsidiary just settled over $235M in Madoff-related lawsuits, clearing a huge financial cloud!**

AI Summary

Credicorp Ltd. announced on January 30, 2024, that its subsidiary, ASB Bank Corp., has fully and finally settled two major litigations in the U.S. Bankruptcy Court. These cases involved the Madoff Trustee seeking approximately US$120.0 million and the Fairfield Liquidator seeking approximately US$115.2 million. This settlement removes significant financial uncertainties and potential liabilities totaling over US$235 million, which is a positive development for shareholders as it eliminates a major overhang on the company's financial outlook.

Why It Matters

This settlement removes a substantial financial risk for Credicorp, as its subsidiary ASB Bank Corp. no longer faces potential liabilities of over US$235 million from the Madoff and Fairfield Sentry litigations.

Risk Assessment

Risk Level: low — The settlement of significant litigation reduces financial uncertainty and potential liabilities, thereby lowering the company's risk profile.

Analyst Insight

A smart investor would view this as a positive de-risking event, potentially leading to a re-evaluation of Credicorp's stock. It might be a good time to review the company's fundamentals, as a major overhang has been lifted.

Key Numbers

• US$120.0 million — principal amount sought by Madoff Trustee (potential liability for ASB Bank Corp. in the Madoff Complaint)
• US$115.2 million — principal amount sought by Fairfield Liquidator (potential liability for ASB Bank Corp. in the Fairfield Complaint)
• January 30, 2024 — date of settlement (when the release and settlement agreements were entered into)

Key Players & Entities

• Credicorp Ltd. (company) — the registrant notifying the material event
• ASB Bank Corp. (company) — Credicorp's subsidiary involved in the litigations
• Bernard L. Madoff Investment Securities LLC. (company) — the entity related to one of the litigations
• Bernard L. Madoff (person) — the individual whose estate was involved in litigation
• Madoff Trustee (person) — the party seeking recovery in the Madoff Complaint
• Fairfield Sentry (In Liquidation) (company) — the entity related to the second litigation
• Kenneth Krys (person) — the representative for Fairfield Sentry (the Fairfield Liquidator)
• U.S. Bankruptcy Court for the Southern District of New York (company) — the court where the litigations were pending

Forward-Looking Statements

• Credicorp's stock price will see a positive reaction due to the removal of significant litigation risk. (Credicorp Ltd.) — medium confidence, target: 2024-02-07
• Credicorp's financial statements for the next reporting period will reflect the absence of these contingent liabilities. (Credicorp Ltd.) — high confidence, target: 2024-03-31

FAQ

Key Financial Figures

• $120.0 million — had sought recovery of approximately US$120.0 million in principal amount (plus certain fees,
• $115.2 million — had sought recovery of approximately US$115.2 million in principal amount (plus certain fees,
• $42,750,000.00 — pay the Madoff Trustee the amount of US$42,750,000.00 (for which ASB Bank Corp. and its affil

Filing Documents

• ef20020225_6k.htm (6-K) — 13KB
• image00001.jpg (GRAPHIC) — 2KB
• 0001140361-24-004626.txt ( ) — 17KB

From the Filing

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934 For the month of January 2024 Commission File Number: 001-14014 CREDICORP LTD. (Translation of registrant's name into English)) Of our subsidiary Banco de Credito del Peru: Calle Centenario 156 La Molina 15026 Lima, Peru (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ January 30, 2024 Securities and Exchange Commission - SEC Re.: MATERIAL EVENT Credicorp Ltd. (the "Company") notifies you as a Material Event that all pending litigation in the U.S. Bankruptcy Court for the Southern District of New York (the Bankruptcy Court) against ASB Bank Corp. with respect to: (i) Bernard L. Madoff Investment Securities LLC. (BLMIS) and the substantively consolidated estate of Bernard L. Madoff (the Madoff Trustee) (the Madoff Complaint), and (ii) Fairfield Sentry (In Liquidation) and its representative, Kenneth Krys (the Fairfield Liquidator) (the Fairfield Complaint), has been fully and finally settled. Under those litigations, the Madoff Trustee had sought recovery of approximately US$120.0 million in principal amount (plus certain fees, costs, interest, and expenses) and the Fairfield Liquidator had sought recovery of approximately US$115.2 million in principal amount (plus certain fees, costs, interest, and expenses). On January 30, 2024, (i) the Madoff Trustee and ASB Bank Corp. entered into a release and settlement agreement (the Madoff Settlement) and (ii) the Fairfield Liquidator and ASB Bank Corp. simultaneously entered into a release and settlement agreement (the Fairfield Settlement), which settlements, without admission of liability, resolves all disputes related to the Madoff Complaint and the Fairfield Complaint among ASB Bank Corp., the Madoff Trustee and the Fairfield Liquidator. Under the terms of the settlements, after approval of the Madoff Settlement by the Bankruptcy Court, among other things, ASB Bank Corp. shall pay the Madoff Trustee the amount of US$42,750,000.00 (for which ASB Bank Corp. and its affiliates are fully provisioned), and the Madoff Trustee and the Fairfield Liquidator shall dismiss the Madoff Complaint and the Fairfield Complaint, as applicable, with prejudice and without costs to either party. A copy of the Madoff Settlement has been filed with the Bankruptcy Court and remains pending for approval with the Bankruptcy Court. The information in this Form 6-K (including any exhibit hereto) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act. Sincerely, /s/ Guillermo Morales Authorized Representative Credicorp Ltd. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: January 30, 2024 CREDICORP LTD. (Registrant) By: /s/ Guillermo Morales Guillermo Morales Authorized Representative

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