Telefónica's Peruvian unit has filed to begin voluntary insolvency proceedings.

The carrier, a subsidiary of Spanish telco Telefónica, kicked off the insolvency process late last week after failing to find a buyer.

According to a regulatory filing, the process will take place in Peru and aims to help the company restructure its finances and operations in the country.

Telefónica noted that Telefónica del Perú's (TdP) board of directors agreed to request an Ordinary Bankruptcy Procedure (PCO).

Telefónica serves more than 13 million customers across the country.

"After evaluating different alternatives to ensure the company's financial stability, we came to the conclusion that voluntarily joining the PCO is the best way to protect the provision of telecommunications services to Peruvians," said Elena Maestre, CEO of Telefónica del Perú.

"We are focused, together with employees and suppliers, on ensuring the long-term permanence of TdP, to bring the best technology to our customers, fulfilling our regulatory commitments."

Telefónica blamed its situation on challenging tax payments, while claiming administrative decisions have "placed the company in a position of competitive disadvantage in a particularly challenging market environment."

The company's insolvency filing in Peru comes at a time when the business has openly outlined plans to divest some of its Latin American units.

Cinco Dias reported last week the carrier is pushing to sell its Mexican unit. Only a couple weeks ago it emerged that interest in its Argentine unit had also ramped up, while the carrier is in talks with Millicom over a sale of its Colombian unit.