By Najat Kantouar
Telefonica decided to start insolvency proceedings for its Peruvian subsidiary, aiming to achieve its restructuring.
The Spanish telecommunications company said late Friday that Telefonica Hispanoamerica--the group's unit that includes assets and operations in Argentina, Chile, Colombia, Ecuador, Peru, Mexico, Uruguay and Venezuela--has granted a credit facility of up to 1.55 billion Peruvian soles, equivalent to $403.8 million, and with a maturity of 18 months, to meet operational cash requirements of Telefonica del Peru.
The decision reflects the negative financial situation of Telefonica del Peru, which was hit by tax contingencies that are more than 20 years old and by administrative decisions that, according to the company, place it at a competitive disadvantage. Telefonica del Peru's liabilities aren't guaranteed by any other company of the group, Telefonica added.
The group will continue to explore strategic alternatives with regard to its investment in its Peruvian subsidiary, it said.
Write to Najat Kantouar at najat.kantouar@wsj.com
(END) Dow Jones Newswires
February 17, 2025 01:26 ET (06:26 GMT)
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