2024-04-14 04:16:47
WOM stated that JP Morgan provided them with financing of US$200 million to support their operations and liquidity, while they are under Chapter 11.
This Monday, WOM reported that filed for voluntary Chapter 11 reorganization of the United States Bankruptcy Law.
Chris Bannister, CEO de WOM Chile, explained in a public statement that “this presentation will allow the company to work with creditors and other interested parties, access new sources of financing and have the necessary tools to support its long-term growth.”
“This process will also allow WOM to continue providing its service uninterruptedly to its more than 8 million customers,” he added.
Along these lines, they stated that JP Morgan provided them with financing for US$ 200 million to support their operations and liquiditywhile they are under Chapter 11.
“The beginning of this process does not imply the liquidation or bankruptcy of the company. The proximity of the bond maturity date, high interest rates and a difficult credit market, among other factors, put pressure on WOM Chile’s liquidity in the short term,” he maintained.
The company stressed that filing for Chapter 11 “is the best option to protect the value of the company.”.
“We are focused on maximizing WOM’s long-term commercial potential, continuing to provide the best service to our clients, protecting our collaborators, meeting our commitments to the Government and ensuring that we have adequate liquidity to invest in our future growth,” he indicated. Chris Banister.
What is Chapter 11 Bankruptcy Law?
Chapter 11 of the United States Bankruptcy Law is a section to which companies join in order to reorganize after failing to meet their creditors.
In this way, firms enter into a pause in their payments to creditors and thus generate a reorganization of their finances to catch up on their debts after the end of this period.
If it fails to pay its debts, a company must go from Chapter 11 to Chapter 7 for liquidation.