Chile Telecom Operator WOM Files for Bankruptcy in the US
- Company has struggled with liquidity ahead of debt payment
- Bonds due 2024 had slumped to below 30 cents on the dollar
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WOM, once a rising Chilean startup that vowed to challenge the country’s dominant telecom operators, filed for bankruptcy after falling short on a plan to refinance $348 million in debt due in November.
The company filed for Chapter 11 bankruptcy protection in Delaware, according to documents dated Monday. The filing allows WOM, which had about $1.8 billion in total liabilities at the end of last year, to keep operating while it works on a plan to repay creditors. The company said in a separate statement that JPMorgan Chase & Co. had agreed to provide $200 million in debtor-in-possession financing.