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Santiago, November 1, 2024, Today, the special committee of independent directors of WOM S.A. (“WOM Chile” and, together with its debtor affiliates, the “Company”) announced that it received a binding stalking horse proposal for a restructuring transaction, which it is in the process of negotiating into final form. The transaction terms being negotiated contemplate a new money investment of approximately US$500 million through a fully-backstopped rights offering and an enterprise value of US$1.6 billion.
The restructuring, which is contemplated to be carried out through a plan of reorganization, would repay the Company’s US$210 million debtor-in-possession financing in full in cash, substantially deleverage the Company’s balance sheet, and yield meaningful recoveries to unsecured creditors in the form of cash, take-back debt, and/or equity in the reorganized Company. The transaction is subject to final documentation and approval by the U.S. Bankruptcy Court for the District of Delaware and the Company’s ongoing marketing process. Other potential bidders are actively engaged in due diligence evaluating a potential acquisition of the Company and the deadline for Qualified Bids remains November 15, 2024.
WOM Chile’s Chief Executive Officer, Martín Vaca Narvaja, said: “I am excited by the continued progress in WOM’s restructuring. The contemplated transaction provides for new capital sufficient to fully fund the Company’s business plan, including the remainder of its 5G buildout, ensuring business continuity while deleveraging WOM’s balance sheet to position it for future growth. In the coming weeks we look forward to completing the marketing process, finalizing transaction documentation and seeking U.S. Bankruptcy Court approval to enable WOM’s emergence from Chapter 11 in early 2025”.
