LATAM Airways data files restructuring prepare to exit personal bankruptcy

A banner of Latam Airways is observed future to vacant check out-in counters in Brasilia Worldwide Airport as air targeted traffic is afflicted by the outbreak of the coronavirus sickness (COVID-19), in Brasilia, Brazil May possibly 28, 2020. REUTERS/Ueslei Marcelino

Nov 27 (Reuters) – Chile’s LATAM Airlines Group SA (LTM.SN) mentioned on Friday it has submitted a reorganization strategy, proposing an $8.19 billion infusion of money into the team, in a bid to exit its Chapter 11 individual bankruptcy.

The funding proposal will consist of a blend of new fairness, convertible notes and personal debt, the group stated in a assertion, introducing that it intends to start an $800 million equity legal rights presenting to shareholders, on affirmation of the strategy.

“Even though our approach is not yet about, we have reached a significant milestone in the path to a more powerful monetary long run,” claimed Roberto Alvo, chief government of the greatest airline in Latin The united states.

A short while ago, LATAM mentioned it obtained numerous gives to fund the exit from Chapter 11 personal bankruptcy, every of which are value extra than $5 billion. The group filed for Chapter 11 individual bankruptcy security in New York in Could 2020 as environment journey arrived to a halt amid the COVID-19 pandemic. examine extra

Upon rising from Chapter 11, LATAM expects to have total credit card debt of about $7.26 billion and liquidity of about $2.67 billion, the enterprise stated in the statement.

The Santiago-based mostly firm noted losses of some $692 million in the 3rd quarter, as the indebted corporation was however battling challenges from the pandemic. go through more

The restructuring program is accompanied by a assistance settlement with creditor group Mother or father Advertisement Hoc Team and some LATAM shareholders.

Reporting by Maria Ponnezhath in Bengaluru Modifying by Sam Holmes

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