2024-04-17 02:01:54
In just five years following starting its operation in the local market, WOM Colombia requested to enter into business reorganization voluntarily before the Superintendence of Companies.The decision was made following its Chilean arm filed for US Bankruptcy Law at the beginning of April.
But the process that is taking place in Colombia is different from that of the Chilean arm, since in the local market the request submitted to the Supersociedades seeks to update the debts of the operation. Billy Escobar, Superintendent of Companies, said in an interview with Blu Radio that at least $400,000 million would need to be injected to save the company.
“We look at financial statements, we look at accounting, debts, but submitting the request does not mean that we admit“We do it when we have a legal and economic concept of viability,” he said.
Last week, furthermore, It became known regarding a meeting held by Thor Bjorgolfsson, the company’s largest shareholder in Colombia, with the ICT Minister, Mauricio Lizcano, to find alternatives and solutions to the financial and liquidity crisis facing the company.
“The Government wants the company to continue, business reorganization is a very important mechanism for companies to save themselves. Let’s hope that this process allows her not to die, we already did it in the past with Tigo, who we helped save her. Of course there is concern that they will enter into that process, but it will help them have some time, obtain funds and continue in the market,” said Minister Lizcano.
Ramiro Lafarga, CEO of WOM Colombia, He said that “this process does not imply the liquidation of the company. On the contrary, it is the opportunity to improve the financial year in the short term, while we maintain the operation and service to our clients.. “Our main shareholder, together with Deutsche Bank, are evaluating alternatives to achieve the required financing and ensure its sustainability.”
The company has not yet publicly reported the financial year report for 2023 to the Supersociedades, but, if the company’s results for the immediately previous year are taken into account, It can be seen that it closed with an equity of $79,821 million and a debt that was around 35.72%.
In Inside LR, Lafarga had said that they would reduce losses in 2023 compared to 2022. The executive He added that there was a delay in the payment that the parent company was going to inject into WOM Colombia, which was $84 million, but of which only US$16 million arrived.
WOM Colombia has around 5.7 million users by 2023 and had a projection of reaching between eight and 10 million by the end of this year. But although it increased in users, it did not find financial equilibrium.
In Colombian regulation, Companies can voluntarily request to benefit from the procedure established in Law 1116 of 2006, provided that the procedural requirements established therein are demonstrated., such is the case, of being a business in progress, a characteristic that the tax auditor certifies. As it is a going concern, the applicant company can continue to develop its commercial activity.
This reorganization process, seeks to preserve companies as viable going concerns and provides the protection or advantage that during the negotiation of the agreement any executive collection will be suspended, thus giving the businessman a break while the operational, administrative, asset and liability restructuring is carried out.
Faced with the doubt regarding the acquisition of the 5G frequency, WOM responded that by liquidating the company that provides 5G (if it reaches that stage in the reorganization process) The Ministry would have to tender the 5G spectrum once more and it would be assigned to the company that is favored in the public selection process. It would not be assigned directly to any current operator, there must be a public bidding process.
Those users who no longer want to have a telephone line with WOM will be able to choose which company to transfer their telephone line to. In fact, at this moment they have that possibility. No authority will “assign” them or distribute them among the remaining operators, since the freedom granted by this right of portability must be respected.
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