LATAM Airlines has reorganization plan approved by US court

Airline intends to leave Chapter 11 during the second half after implementing remaining corporate actions

LATAM Airlines announced that the Court for the Southern District of New York has approved the airline’s proposed reorganization plan to leave Chapter 11, US bankruptcy law.

The plan has the support of almost all of the company’s creditors after months of negotiations with its main partners and complies with the U.S. and Chilean legal requirements, explained LATAM.

“We are very satisfied with the judge’s confirmation of our restructuring plan. This is a very important step in the process to emerge from Chapter 11, and we will continue working hard to complete the remaining steps in the coming months,” said Roberto Alvo, CEO of LATAM Airlines Group.

LATAM is now tasked with implementing a series of corporate measures that will allow the carrier to exit Chapter 11, which is expected in the second half of the year.

“This includes approval at the Extraordinary Shareholders’ Meeting of the new capital structured in the Plan, the registration of shares and bonds in the securities registry of the Financial Market Commission (CMF) and the implementation of the respective preferential offering periods of the convertible shares and bonds in favor of LATAM’s current shareholders,” the Chile-based company said in a statement.

LATAM’s turnaround plan calls for an investment of approximately $8 billion through a combination of a capital increase, the issue of convertible bonds and new debt, of which $5.4 billion of financing backed by major shareholders (Delta Air Lines, Qatar Airways and Grupo Cueto) and LATAM’s major creditors.


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