Telefonica Peru Unit to Declare Insolvency After Failed Sale (1)

Telefonica SA’s Peruvian unit said Friday that it has begun an insolvency process in a bid to restructure its finances and operations after failing to find a buyer.

The process will take place in Peru, according to a regulatory filing. The decision comes less than a month since Spanish political appointee Marc Murtra was named to lead the business, which is partly state-owned.

The filing allows Telefonica, which had provisioned nearly €800 million ($840 million) for a local tax payment and faces deteriorating prospects in Peru, to reduce its exposure to the unit amid a wider pull-out from Latin ...