U.S. Court approves LATAM's Reorganization Plan
June 18 2022 - 11:33PM
LATAM Airlines Group and its subsidiaries in Brazil, Chile,
Colombia, Ecuador, Peru and the United States announced that the
U.S. Bankruptcy Court for the Southern District of New York
approved the group's Plan of Reorganization filed by LATAM in the
context of its Chapter 11 reorganization proceeding. Backed by
nearly all of LATAM's creditors, the Plan is the result of months
of negotiations among major stakeholders, which included an
extensive mediation period. The Plan complies with U.S. and Chilean
legal requirements. The confirmation order issued today by the U.S.
Court represents the latest milestone in the U.S. Chapter 11
process initiated by LATAM to ensure its long-term sustainability.
“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 S.A.
LATAM is now focused on the implementation of the corporate
actions necessary to complete the exit from the Chapter 11
reorganization process in the coming months. This includes approval
at the Extraordinary Shareholders' Meeting of the new capital
structure contemplated 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.
Once effective, the LATAM Plan will inject approximately US$8
billion through a combination of a capital increase, the issuance
of convertible bonds and new debt. This includes US$5.4 billion of
financing backed by major shareholders (Delta Air Lines, Qatar
Airways and Grupo Cueto) and LATAM's major creditors (i.e., the
Parent Ad Hoc Group creditors and certain local bondholders).
LATAM's exit from the Chapter 11 process is expected during the
second half of 2022.
ABOUT LATAM AIRLINES GROUP
LATAM Airlines Group S.A. and its affiliates are the main group
of airlines in Latin America with presence in five domestic markets
in the region: Brazil, Chile, Colombia, Ecuador and Peru, in
addition to international operations inside Latin America and
between it and Europe, Oceania, the United States, and the
Caribbean. The group has a fleet of Boeing 767, 777, 787, Airbus
A321, A320, A320neo and A319 aircraft.
LATAM Cargo Chile, LATAM Cargo Colombia, and LATAM Cargo Brazil
are the LATAM Airlines freight subsidiaries. In addition to having
access to the passenger cargo holds of LATAM Airlines Group, they
have a fleet of 14 freighters, which will gradually increase to a
total of up to 21 freighters by 2023. They operate on the LATAM
Airlines Group network, as well as international routes that are
solely used for shipping. They offer modern Infrastructure, a wide
variety of services and protection options to meet all customer
needs.
For LATAM press inquiries, write to
comunicaciones.externas@latam.com. More financial information is
available at www.latamairlinesgroup.net.
- 06182022 - US Court Approves LATAM Plan of Reorganization
Investor Relations
Phone: +56 2 2565 2525
E-mail: InvestorRelations@latam.com
Website: www.latamairlinesgroup.net
Latam Airlines (NYSE:LTM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Latam Airlines (NYSE:LTM)
Historical Stock Chart
From Sep 2023 to Sep 2024