The company announced that it has approved two key steps to exit the process involving Chapter 11 of the United States Bankruptcy Law.
Telecommunications company WOM Chile announced that it has approved two key steps to enable the company to exit the process involving Chapter 11 of the United States (US) Bankruptcy Law.
On the one hand, it was reported that the Delaware Bankruptcy Court confirmed the Reorganization Plan, agreed upon with the Ad Hoc group of bondholders and previously submitted to the aforementioned court.
In addition, the National Economic Prosecutor's Office (FNE) in Chile also approved the takeover of WOM Mobile SA by the companies Amundi, BlackRock, Man GLG and Moneda.
WOM announces key milestones in its restructuring
At the beginning of December, it was reported that the Ad Hoc group of bondholders - advised by Chris Bannister - managed to reach an agreement for the financial restructuring process of WOM.
The deal values the company at $1.6 billion and includes a capital injection of up to $500 million, along with a debt reduction of approximately $650 million.
The acquisition of WOM by the aforementioned group of creditors will mean that its ownership will pass from Novator Partners -current owner- to BlackRock, Amundi, Man GLG and Moneda, who formed the company WOM Cayman Holdings in October, according to Pulso .
Now, regarding the approval of the Delaware Court as the FNE in Chile, the current CEO, Martín Vaca Narvaja, highlighted that the company has advanced in a “rapid and sustained” manner in Chapter 11, “ensuring the operational continuity of the company.”
"These milestones reaffirm the support of our creditors, the solidity of the Plan we presented and the ongoing support" of the Ad Hoc bondholders, it said in a statement.
He also expressed his gratitude to the entire team, adding that “we have successfully navigated our restructuring process, recovered our commercial performance and achieved solid financial results.”
The CEO now aims to “get out of Chapter 11 in the next few weeks.”
