Views: 90
WOM S.A. (“WOM Chile”, and together with its debtor affiliates, the “Company”) announced further developments today in its chapter 11 restructuring process. The Company, which is pursuing a chapter 11 plan (the “Plan”) sponsored by the Ad Hoc Group of Unsecured Noteholders (the “AHG”), filed a supplement to the Plan with the Bankruptcy Court that included a list of the anticipated post-chapter 11 officers and directors, including, as directors, Mauricio Ramos (as Chairman), Claudio Muñoz, Alejandro Puentes, Eugene Davis and Chris Bannister. Mr. Bannister, who has been advising the AHG during the chapter 11 process, will be returning to WOM Chile as Chief Executive Officer after the Company emerges from chapter 11.
The Company’s current Chief Executive Officer, Martín Vaca Narvaja, is anticipated to serve in an advisory role to the Board of Directors of WOM Chile post-emergence. Since joining the Company shortly after it filed for chapter 11 protection, Mr. Vaca Narvaja steered the Company through the restructuring process and has played an important role in maintaining WOM Chile as a leading mobile and fiber brand. The Company and the AHG thank Mr. Vaca for his hard work and diligence and is grateful that he is contemplating continuing his relationship with the Company as an advisor to the Board of Directors.
Mr. Vaca stated: “I am proud to announce a new milestone in our chapter 11 exit process: the identification of five candidates to serve on the Board of Directors of the reorganized Company. Over the past 10 months, we have successfully navigated the most challenging period in WOM’s history. WOM’s culture and the unwavering commitment of the team that has accompanied me through this period have been key to achieving this success. I warmly welcome Chris and am absolutely convinced that under his leadership and relentless dedication, and with the support of the new Board and the AHG, WOM will continue on its path of growth and as a leader of the transformation of the telecommunications industry in Chile”.
Mr. Bannister added the following: “I’d like to congratulate Martin for running a professional process and keeping WOM’s energy and culture strong. I look forward to working with him during the final phase and transition. Once out of chapter 11, WOM has a huge opportunity to continue to grow through utilizing its 5G capabilities. Keep the passion and let’s get the show on the road”.
The Plan and all restructuring transactions contemplated by it remain subject to the approval of the Bankruptcy Court and the satisfaction of the standards for confirmation in the U.S. Bankruptcy Code. A hearing to consider confirmation of the Plan is currently scheduled for March 6, 2025 at 10am E.T. in Wilmington, Delaware.
Pursuant to the Plan and the restructuring transactions contemplated by it, WOM Chile will benefit from a well-capitalized balance sheet following a $500 million rights offering that is backstopped by the AHG and a net reduction in financial debt of approximately $650 million. For further information, please refer to Kroll for the Disclosure Statement that is publicly available and contains information regarding WOM Chile’s business operations and financial projections, a summary of the Plan of Reorganization, and details on creditor treatment.
