Colombian wireless operator Partners Telecom Colombia has successfully completed a corporate reorganisation valued at COP3.2bn ($800mn), Latin Lawyer reported.

The agreement secured approval from nearly 86% of creditors with voting rights, enabling the company to avoid potential liquidation.

Holland & Knight Colombia guided the telecommunications firm through the reorganisation process under Law 1116, which commenced after the company acknowledged severe financial constraints in mid-April. The operator, trading as Wom Colombia, had sought regulatory protection citing operational payment difficulties that threatened its viability.

As of December 2024, Wom Colombia reported assets totalling COP4.37bn ($1.08bn) against liabilities of COP5.92bn ($1.47bn), highlighting the financial pressures that necessitated the restructuring. The company serves more than 6.2mn users across the Colombian market, representing the nation's fourth-largest telecommunications operator.

Under the approved arrangement, Wom Colombia prioritises settling obligations to 2,000 small business creditors owed less than COP100mn ($24,800) each by 2026. The restructuring framework also enables the company to fulfil its 5G network deployment commitments, ensuring continued technological advancement despite financial constraints.

The successful reorganisation marks a critical juncture for the Colombian wireless sector, where competitive pressures and infrastructure investment requirements have strained operator finances. Industry analysts view the creditor agreement as providing Wom Colombia with necessary breathing space to stabilise operations whilst maintaining service continuity for its substantial customer base.

This development reflects broader challenges facing Latin American telecommunications companies, where rapid technological transitions and market saturation have intensified financial pressures across the region's mobile operators.