According to the Spanish media El Confidencial , the telco is seeking to reach an agreement with the actors to whom it owes around 1.24 billion euros.

Spanish telecoms company Telefonica has hired Rothschild to help it sell its Peruvian division, which entered into bankruptcy last month, news outlet El Confidencial reported Thursday.

According to financial sources of the Spanish newspaper, the consulting firm is seeking to reach an agreement with the creditors of Telefónica del Perú, whose debt amounts to 1.24 billion euros. This amount corresponds to the liability registered in the Ordinary Bankruptcy Procedure (PCO) before the Bankruptcy Procedures Commission of Indecopi, presented on February 24.

The newspaper also indicated that the financial advisory group will also be in charge of finding a buyer for the Peruvian subsidiary. “That buyer could be the pension and investment funds themselves, mostly American, if the final agreement involves a debt-for-equity swap,” El Confidencial reported.

Last month, Telefónica sold its subsidiary in Argentina for 1.245 billion dollars as part of a strategy - under the new management of Marc Murtra - to gradually reduce exposure to Latin America.

Argentine President Javier Milei has threatened to torpedo the transaction, arguing that the acquisition could leave approximately 70% of telecommunications services in the hands of a single economic group, creating a monopoly based on decades of state benefits received by the company. "If this is the case, the National State will take all pertinent measures to prevent it," says the official statement from the Office of President Javier Milei.

Murtra, who took over as CEO in January from José María Álvarez-Pallete, said the company will complete a strategic review before the end of this year.

Telefónica was not immediately available for comment.