Chilean operator WOM filed for bankruptcy after it failed to refinance its US$348 million debt pile in November, due to challenging macroeconomic conditions.
Bloomberg reported, the operator filed for bankruptcy in the US and according to documents filed in Delaware the company had US$1.8 billion in total liabilities at the end of 2023, as it worked on a plan to repay creditors. The company said in a statement seen by Bloomberg, that JPMorgan Chase & Co agreed to provide US$200 million in debtor-in-possession financing.
WOM is a challenger operator setting up shop to disrupt incumbents with bold marketing campaigns and cheaper mobile plans. It competes with Telefonica (Movistar) and Entel, taking 21% of the Chilean market. WOM was created by Novator Partners after it acquired assets of Nextel Chile in 2015.
Finding the right capital structure through the Chapter 11 process was “the best decision” to protect the firm’s value and long-term potential under a challenging macroeconomic environment, Novator Partners founder Thor Bjorgolfsson, said in a statement.
