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Santiago, June 20, 2024. WOM Chile, the Official Committee of Unsecured Creditors and the Ad Hoc Group of bondholders announced today that they have reached an agreement to (i) continue the U.S. financial reorganization process under Chapter 11 of the U.S. Bankruptcy Code, and (ii) support the evaluation of alternatives to exit the reorganization process.
The agreement, which is subject to subsequent approval by order of the U.S. Bankruptcy Court for the District of Delaware, includes a number of specific items. Among other things, under the agreement, the Ad Hoc Group of bondholders agreed to withdraw most of its objections to WOM Chile’s applications and its motion to dismiss, thereby allowing the reorganization process to continue in the U.S., and the parties agreed to extend the ability to pay local suppliers as requested by WOM Chile. WOM Chile’s special committee composed of two independent directors will consider all relevant factors in evaluating the qualified bids regarding alternatives to exit the reorganization process.
In addition, the U.S. Bankruptcy Court granted final approval of WOM Chile’s US$210 million DIP financing with JPMorgan, freeing up US$110 million of available liquidity to support its business operations and restructuring efforts.
The agreement ensures WOM Chile’s ability to continue to operate its business and proceed with its orderly restructuring process in the United States and maximize value for all stakeholders, including by implementing a competitive bidding process to explore all available strategic alternatives to consummate the highest and best transaction to exit the reorganization process.
