12:49 PM
The ICT Minister, Mauricio Lizcano, stated that the National Government is trying to save Wom. He argued that it is not in the country’s interest for it to go bankrupt, but he pointed out that the government will not provide resources to save it.
“If it goes bankrupt, it will be left owing money to many suppliers in the sector and that obviously affects the country’s growth and employment.”
And also, he added that his absence would affect competition in the sector and users, which is why the Government accepted the bankruptcy law.
Find out: SuperSociedades admits Wom Colombia in reorganization process, what will happen to users?
The senior official indicated that he meets with the company on a monthly basis and has expressed that it has to make a quick investment so that the bankruptcy plan can be financed.Without resources it will be very difficult to sustain the operation, I gave it more or less a month, it is counting at this very moment for them to bring the resources to the country and invest in the operation, because they also have to pay what they owe for the spectrum, That cannot be lowered because it is an obligation and they have to show us how they are going to recover the company. If that plan is not clear and credible, Wom would go into liquidation in the coming months.”
It should be noted that the Superintendency of Companies reported that Wom was admitted to the business reorganization process in May of this year. With this, the business rescue process began in which the company is expected to be able to carry out its business plan, to safeguard its operation and the more than 2,600 jobs it generates in the country.
The company decided to undergo the corporate reorganization process because it was in a situation of imminent inability to pay its current liabilities, thereby avoiding default and managing to meet its obligations and protect its assets.
It must be remembered that Colombia is not the only country where this company has difficulties. In fact, in April of this year WOM also filed for bankruptcy in Chile. as a result of their financial problems. Even after this situation, the company’s director, Chris Bannister, announced his retirement from the company, after being at the helm for less than six months.
Bannister explained on LinkedIn that the company’s owners failed to comply with a capitalization requirement, which is why he decided to resign. The company’s main shareholder is Icelandic Thor Bjorgolfsson, who was once ranked as the richest man in that Nordic country.
“The shareholder promised to provide funding if I returned to reinvigorate the management and corporate culture,” Bannister wrote, insisting the company did not make the capital injection.
And the users?
Lizcano said that, in the event of liquidation, Wom users would become part of another company, given a plan by the Superintendency of Industry and Commerce. “Users are protected.”
The minister ruled out any financial aid from the National Government to save the company. “How are we going to put money from taxpayers, money from the most humble people to finance a private telecommunications company, when the country has many companies, that would be enriching some private ones. “That has to be private resources.”
