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- The company exits Chapter 11 with a well-capitalized balance sheet a US$650 million reduction of its financial debt.
Santiago, Chile – March 21th, 2025 – WOM S.A. (“WOM Chile” and, together with its debtor affiliates, the “Company”) is pleased to officially announce its successful exit from the Chapter 11 process under entirely new ownership, initiating a new stage with the entry into force of its new Restructuring Plan (the “Plan”).
As stipulated in the Plan and the restructuring transactions contemplated therein, the Company will have a solid balance sheet following: 1) a successful US$500 million rights offering, 2) a greater than US$650 million reduction of its financial debt and 3) excluding leases, the company will have US$332 million in New First Lien Secured Bonds that mature six (6) years from the effective date of the Plan.
The Company’s shareholders, management, and board of directors –believe the Restructuring Plan and recapitalization of the Company have positioned WOM to consolidate its financial position, regain its leadership in the Chilean telecommunications industry, and drive growth and profitability for all of its stakeholders.
Also, as of today, Mauricio Ramos will assume the role of Chairman of the Board of the Company. He will be joined by Chris Bannister, Eugene Davis, Claudio Muñoz and Alejandro Puentes. In addition to serving on the Board of Directors, Mr. Bannister will as CEO of WOM Chile.
Likewise, the shareholders and Board of Directors would like to recognize the contribution made by Martín Vaca Narvaja and his team during the Chapter 11 process. During the [last year], WOM’s entire team managed to stabilize the business and maintain operational continuity, conserving a strong foundation for the Company to build on as it exits from Chapter 11.
Mr. Ramos said, “It is a privilege that the new owners of WOM have chosen me to be Chairman of such an experienced Board. I look forward to helping Chris and the rest of the Board navigate the company through the next exciting phase of WOM as it works to achieve its ambition of being the leading telco in Chile”.
Chris Bannister, CEO of WOM Chile, said, “This is a key day in WOM’s story. We have successfully overcome one of the most difficult moments in our history and are prepared to regain our leadership in the industry with the support of our board of directors and the backing of our new owners. I want to thank our more than 2,000 employees for their commitment in times of great uncertainty, our more than 8 million customers throughout the country for allowing us to serve them, , and our strategic suppliers who have shown continued trust and partnership during this process”.
It should be noted that during the Chapter 11 process, WOM Chile, which has the largest 5G network in the country, remained the 2nd largest operator (in terms of 3G/4G/5G mobile connections and maintained its market share at 25%. Additionally, for the fifth time in six years, the company obtained 1st place in the Mobile Telephone sector with the PROCALIDAD 2024 National Customer Satisfaction Award.
With the exit from the Chapter 11 process, WOM will redouble its commitment to its mission of democratizing telecommunications in Chile, maintaining its innovative DNA, and offering high-quality connectivity at affordable prices.
