US Court Approves LATAM Reorganization Plan

Santiago, Chile, June 18, 2022 (GLOBE NEWSWIRE) — LATAM Airlines Group and its subsidiaries in Brazil, Chile, Colombia, Ecuador, Peru and the United States announced that the US Southern District Bankruptcy Court of New York had approved the Plan of Reorganization filed by LATAM as part of its Chapter 11 reorganization proceedings. Supported by substantially all of LATAM’s creditors, the plan is the result of months of negotiations between the principal parties stakeholders, which included a long period of mediation. The Plan complies with US and Chilean legal requirements. The confirmation order issued today by the US court represents the final step in the US Chapter 11 process initiated by LATAM to ensure its long-term sustainability.

“We are very satisfied with the confirmation by the judge of our restructuring plan. This is a very important milestone in the Chapter 11 exit process, and we will continue to work hard to complete the remaining milestones in the coming months,” said Roberto Alvo, CEO of LATAM Airlines Group SA.

LATAM is now focused on implementing the corporate actions necessary to complete the exit from the Chapter 11 reorganization process in the coming months. This includes the approval by the Extraordinary General Meeting of the new capital structure provided for in the Plan, the registration of the shares and bonds in the securities register of the Commission des Marchés Financiers (CMF) and the implementation of the respective preferential offer periods of the convertible shares and the bonds in favor of the current shareholders of LATAM.

Once effective, the LATAM plan will inject approximately US$8 billion through a combination of capital raising, issuance of convertible bonds and new debt. This includes US$5.4 billion in funding backed by major shareholders (Delta Air Lines, Qatar Airways and Grupo Cueto) and major creditors of LATAM (i.e. ad hoc parent group creditors and some local bondholders). LATAM’s exit from the Chapter 11 process is expected in the second half of 2022.

ABOUT LATAM AIRLINES GROUP

LATAM Airlines Group SA and its subsidiaries are the main airline group in Latin America with a presence in five national markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, in addition to international operations in Latin America and between it. ci and Europe, Oceania, USA and 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 cargo subsidiaries of LATAM Airlines. In addition to having access to LATAM Airlines Group passenger cargo holds, they have a fleet of 14 freighters, which will gradually increase to a total of 21 freighters by 2023. They operate on the LATAM Group network Airlines, as well as on international routes used only for maritime transport. They offer a modern infrastructure, a wide variety of services and protection options to meet all customer needs.

For LATAM press inquiries, write to [email protected] More financial information is available at www.latamairlinesgroup.net.

  • 06182022 – US court approves LATAM reorganization plan

        

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