LATAM Airlines submits restructuring plan to escape bankruptcy

File photo: A Latin American airline banner appears next to an empty check-in counter at Brasília International Airport, affected by the coronavirus disease (COVID-19) that occurred in Brasília, Brazil, on May 28, 2020. increase. REUTERS / Ueslei Marcelino

November 27, 2021

(Reuters) -Chile’s LATAM Airlines Group SA said on Friday that it had submitted a restructuring plan proposing a $ 8.19 billion capital injection into the group to get out of the bankruptcy of Chapter 11.

The group said in a statement that the funding proposal would include a combination of new shares, convertible bonds and debt, and plans to launch a $ 800 million equity rights offering to shareholders after confirming the plan. He added that there is.

Roberto Arbo, Chief Executive Officer of Latin America’s largest airline, said:

Recently, LATAM said it had received several offers to fund Chapter 11 bankruptcy. Each offer is worth over $ 5 billion. The group filed for Chapter 11 Bankruptcy Protection in New York in May 2020 due to the suspension of global travel during the COVID-19 pandemic.

LATAM expects total debt to be approximately $ 7.26 billion and liquidity to be approximately $ 2.67 billion after exiting Chapter 11.

The Santiago-based company reported a loss of approximately $ 692 million in the third quarter as the debtor company was still struggling with challenges from the pandemic.

The restructuring plan involves support agreements with the creditor group Parent Ad Hoc Group and some LATAM shareholders.

(Report by Maria Ponnezhath in Bangalore, edited by Sam Holmes)

LATAM Airlines submits restructuring plan to escape bankruptcy

Source link LATAM Airlines submits restructuring plan to escape bankruptcy

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