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- WOM Chile’s restructuring efforts and Chapter 11 filing are aimed at enabling the company to strengthen its financial stability, continue to grow its business, protect its employees, meet its commitments to the government and continue to provide the best service to its more than 8 million customers.
- The Chapter 11 filing is intended to enable the company to successfully reorganize its capital structure without halting its operations.
- WOM Chile obtained a US$200 million Debtor In Possession financing agreement from JPMorgan, which will provide capital to support its operations and enable its growth in the local market.
Santiago, April 1, 2024 – WOM Chile, filed this morning a voluntary petition to reorganize its capital structure to address its short-term liquidity needs under U.S. Chapter 11 in the District of Delaware.
The initiation of this process does not imply the liquidation or bankruptcy of the company. It provides WOM with the ability to work with its creditors and other stakeholders, access new sources of financing, and strengthen its financial position to support the long-term viability of the business.
Chapter 11 allows WOM’s business operations to continue as normal in order to continue delivering uninterrupted, quality service to its more than 8 million customers. In addition, the company closed a US$200 million DIP financing agreement with JPMorgan, which will provide key resources to support its operations and accelerate its growth in the Chilean market.
The proximity of the bond maturity date, high interest rates and a difficult credit market, among other factors, put pressure on WOM Chile’s liquidity in the short term.
“After evaluating different scenarios to ensure the company’s financial stability, we concluded that a voluntary Chapter 11 filing is the best option to protect the value of the company. We are focused on maximizing WOM’s long-term business potential, continuing to provide the best service to our customers, protecting our employees, fulfilling our commitments to the government and ensuring that we have adequate liquidity to invest in our future growth,” said Chris Bannister, CEO of WOM.
Despite the obstacles derived from the confluence of external factors, during the last quarters the company has achieved sustained growth in EBITDA and revenues.
“Our commitment to connect millions of Chileans to the country’s largest 5G network and thereby reduce the digital divide in Chile remains intact, as does our spirit as a company. We know that our arrival in Chile marked a before and after in the telecommunications market, we dared to offer fair prices for the benefit of millions of people and we will continue working with the same passion that characterizes us,” concluded Bannister.
During this process, WOM is being advised by White & Case, LLP, Richards, Layton & Finger, P.A., and Carey as legal advisors; Riveron Consulting as financial advisor and Rothschild & Co. as investment banking advisor.
More information at http://www.wom.cl/c11/
