Chile’s WOM completes restructuring following bankruptcy declaration

WOM Ad Hoc Group represents one of WOM's major creditors, and is comprised of bondholders of bonds issued under New York law, most of which are some of the world's most sophisticated and renowned investment fund managers, such as BlackRock, Amundi Asset Management, Man GLG Partners, and Moneda Asset Management.

WOM is one of the leading telecommunications providers in Latin America, reaching more than 8.5 million clients and being the second largest mobile network operator in Chile as of 2019.

WOM Ad Hoc Group was advised on the transaction by law firm Bofill Mir Abogados, counseling the group on both the acquisition and its financing as well as Chilean law matters involved in the Chapter 11 process, together with law firm Dechert LLP of New York.

“This transaction marks a milestone in this year’s local M&A market and also stands out as one of the most relevant Chapter 11 proceedings to date involving Chilean companies, of which our firm has advised on several occasions,” Bofill Mir Abogados said.

The firm advised WOM Ad Hoc Group as the successful bidder in the competitive process conducted by WOM as part of its restructuring plan approved in December 2024.

This complex transaction involved a full corporate restructuring of WOM’s entities, the incorporation of foreign and domestic vehicles and funds, and the issuance of new secured and unsecured notes to capitalize and satisfy creditor claims.

The firm’s advice covered all aspects of the post-restructuring acquisition of WOM and its subsidiaries and its team conducted a comprehensive analysis of all competition-related aspects of the transaction, designed the notification strategy and the notification itself before the Chilean Antitrust Agency (FNE), and secured the authority’s approval in record time, without any conditions.

In the Chapter 11 proceeding filed by six WOM Group entities before the US Bankruptcy Court for the District of Delaware, the firm’s role focused on advising on the structuring of the  restructuring plan aligned with the best interests of the WOM Ad Hoc Group.

We actively participated in the bidding process conducted by WOM, which led to an agreement between the latter and the WOM Ad Hoc Group, reflected in the execution of the restructuring plan that ultimately enabled the change of control and acquisition of WOM.

Octavio Bofill Genzsch, leading partner of this transaction, said: “The successful navigation of WOM's complex Chapter 11 proceedings and the resulting acquisition and financing underscores Bofill Mir Abogados' proficiency in complex, cross-border M&A transactions involving multiple jurisdictions, and above all, demonstrate the sophistication and commitment of all teams involved throughout the different stages of this process”. 

The firm’s team comprised its insolvency, M&A, financing and capital markets teams, with partners Octavio Bofill G. and Rodrigo Saffirio, senior associates Gonzalo Barceló and Octavio Bofill B. and associates Sofía Rivera, Martina Preuss, Benjamín Guerrero and Max Vial.

Also involved were the firm’s TMT team, made up of senior associates Pablo Nogueira and Jaime Ayala and associate Macarena Encinas, as well as tax senior associate Josefina Da Bove and associate Cristián Silva, and antitrust director Manfred Zink and Associate Sebastián Cañas as well as data protection  senior associate Jorge Tisné and compliance senior associate Rocío Vergara and associate Roberto Natho, in addition to labor partner Luis Alberto Cruchaga and associate Camila Pumarino.

Dechert LLP acted as US and Luxembourg counsel for the WOM Ad Hoc Group and Fischer y Cía acted as Chilean co-counsel in tax matters for the WOM Ad Hoc Group.

BAHR acted as Norwegian counsel for the WOM Ad Hoc Group, while White & Case as US counsel for the WOM and Carey acted as Chilean counsel for WOM.