Colombia-Telefonica joint venture faces axe

24 Nov 2011

The Colombian government has warned that it will be forced to liquidate its joint venture with Spain’s Telefonica, Telefonica Telecom (formerly Colombia Telecom), if congress does not approve a COP7.5 trillion (USD3.8 billion) capitalisation plan, reports Reuters. Finance minister Juan Carlos Echeverry told congress that if it did not authorise the funding, ‘the company will be liquidated and its assets will be auctioned.’ With debts of COP1.9 trillion due by the end of the year, Echverry said that the legislature must approve the plan before it breaks for recess in three weeks’ time.

Representing the Spanish company, the president of its Colombian operations, Alfonso Gomez said: ‘We’re supporting the capitalisation. We’re ready and able to capitalise, but if the government does not see another option than liquidating, we would agree.’