...The removal of the Rating Watch Negative and ratings upgrade reflect shareholders' approval on Aug. 29, 2017 for the recapitalization of the company to fund a full repayment of Colombia Telecomunicaciones S.A. E.S.P.'s (Coltel) Parapat liability of COP4.8 trillion and arbitration verdict of COP1.65 trillion. Telefonica SA (Telefonica) will provide in cash COP4.35 trillion, in line with its 67.5% ownership and Colombia's Ministry of Finance will assume its pro-rated proportion of Parapat liability without disbursement of funds. The company already paid off its arbitral award on Aug. 29, 2017 with the cash injection from Telefonica. The remaining capital injection process to pay for the Parapat liability is expected to be completed during the first half of September, following the final termination of the Parapat operating agreement. This will result in a transfer of Parapat operating assets to Coltel, including fixed-line network operations in Bucaramanga and Barranquilla, which would provide...
