Jordan News | Latest News from Jordan, MENA
January 20 2022 3:48 PM ˚
e-paper Subscribe Sign in My Account Sign out

LATAM Airlines announces plan to exit US bankruptcy

dd5274702d1382d696caeb6e0f6980c5
(Photo: LATAM)
  • +
  • -
SANTIAGO  — LATAM Airlines, Latin America’s largest, on Saturday announced terms of a financial reorganization plan that includes an $8.19 billion injection to help it exit bankruptcy under US law. اضافة اعلان

“Although our process is not yet complete, we have reached a fundamental milestone on the road to a stronger financial future,” company CEO Roberto Alvo said in a statement.

LATAM said its $8.19 billion would come through a combination of fresh capital, convertible bonds and debt, allowing it to exit Chapter 11 under US bankruptcy law.

Chapter 11 allows a company unable to pay its debts to reorganize without pressure from creditors.

Created in 2012 by the merger of Chile’s LAN and Brazil’s TAM airlines, LATAM filed for Chapter 11 protection in May after continent-wide confinement measures to contain the coronavirus forced it to reduce its operations by 95 percent.

In September, a New York court approved a $2.45 billion bankruptcy loan package to help LATAM, which had laid off thousands of workers and closed its Argentine subsidiary in money-saving steps.

The airline’s plan still requires approval at a US court hearing set for January, and in a final confirmation hearing two months later.

At that point, LATAM is expected to have total debt of about $7.26 billion and liquidity of $2.67 billion.

LATAM has subsidiaries in Chile, Colombia, Ecuador, Peru, and the US.

Read more Business 

NEWS RELATED TO