The telco clarified that this does not imply liquidation or bankruptcy, but rather reorganizing its financial obligations and guaranteeing the uninterrupted provision of telecommunications services.

The Board of Directors of Telefónica del Perú (TdP) agreed to request an Ordinary Bankruptcy Procedure (PCO) before the National Institute for the Defense of Competition and the Protection of Intellectual Property (Indecopi) to restructure its financial obligations, with a focus on guaranteeing the uninterrupted provision of telecommunications services to more than 13 million customers in urban and rural areas of Peru.

"After evaluating different alternatives to ensure the financial stability of the company, we came to the conclusion that voluntarily joining the PCO is the best way to protect the provision of telecommunications services to Peruvians. We are focused, together with employees and suppliers, on ensuring the long-term permanence of TdP, to bring the best technology to our customers, fulfilling our regulatory commitments," said Elena Maestre, Executive President of Telefónica del Perú, in a statement,

In order to enable the adoption of the PCO, Telefónica Hispanoamérica (parent company of Telefónica del Perú) has granted a line of credit exclusively intended to cover the operational cash needs to maintain the provision of the service.

The company acknowledged that in recent years, its financial situation has been affected by the effects of fiscal contingencies dating back more than twenty years and "by administrative decisions that have placed the company in a position of competitive disadvantage in a particularly challenging market environment."

At the same time, he clarified that the start of the restructuring process does not imply a liquidation or even bankruptcy; rather, it will provide the company with the ability to work with its creditors and other interested parties to continue serving Peru, protect its employees, strengthen its financial position and ensure the sustainability of its business.

To organize the process, the company has hired the services of Kroll, a financial advisory firm that will integrate a member of its team as Chief Restructuring Officer (CRO).