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Santiago, December, 2024. The United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) authorized WOM Chile to enter into the Plan Sponsor Agreement and the Backstop Commitment Agreement (the “Support Agreements”) with the Ad Hoc Group of Noteholders represented by Dechert LLP (the “Dechert Ad Hoc Group”) and overruled the sole remaining objection raised by a different ad hoc group of noteholders represented by Benesch, Friedlander, Coplan & Aronoff LLP (the “Benesch Ad Hoc Group”).
The official committee of unsecured creditors in the chapter 11 cases (the “UCC”) confirmed their support for the Support Agreements, and all other objections (from Banco de Crédito e Inversiones and the Office of the U.S. Trustee) were resolved prior to the hearing.
The Bankruptcy Court found that the evidence submitted by WOM Chile was unrebutted, the Court-ordered marketing process, which led to the execution of the Support Agreements, was untainted, and the Support Agreements represented the only viable option for WOM Chile to exit from chapter 11. The Bankruptcy Court also found that the payment obligations incurred by WOM Chile under the Backstop Commitment Agreement were reasonable, customary, market-based, and necessary to induce the Dechert Ad Hoc Group to enter into the Support Agreements.
WOM Chile’s Chief Executive Officer, Martín Vaca Narvaja, said: “Today’s approval of the Support Agreements is a major milestone in WOM Chile’s restructuring efforts. Pursuant to the Support Agreements, the Dechert Ad Hoc Group has committed to backstop an offering for up to US$500 million of new financing to fund WOM Chile’s chapter 11 plan and operations post-emergence”.
The Bankruptcy Court entered an order approving entry into the Support Agreements following the conclusion of the hearing.
WOM Chile and its affiliated chapter 11 debtors filed their disclosure statement and chapter 11 plan on December 19, 2024, and a hearing on the disclosure statement is scheduled for January 23, 2025 at 9:30am ET.
