LATAM Airlines documents restructuring system to exit individual bankruptcy

A banner of Latam Airways is seen upcoming to empty test-in counters in Brasilia International Airport as air site visitors is affected by the outbreak of the coronavirus disorder (COVID-19), in Brasilia, Brazil May 28, 2020. REUTERS/Ueslei Marcelino

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

The funding proposal will contain a combine of new equity, convertible notes and personal debt, the team explained in a statement, adding that it intends to launch an $800 million fairness rights presenting to shareholders, on affirmation of the strategy.

“While our method is not nonetheless above, we have reached a vital milestone in the path to a much better monetary long run,” stated Roberto Alvo, main executive of the largest airline in Latin The us.

Not too long ago, LATAM said it received a number of delivers to fund the exit from Chapter 11 personal bankruptcy, each individual of which are truly worth far more than $5 billion. The group filed for Chapter 11 personal bankruptcy security in New York in May perhaps 2020 as earth journey came to a halt amid the COVID-19 pandemic. read far more

On rising from Chapter 11, LATAM expects to have whole credit card debt of about $7.26 billion and liquidity of about $2.67 billion, the business claimed in the assertion.

The Santiago-based mostly business noted losses of some $692 million in the 3rd quarter, as the indebted enterprise was nevertheless battling troubles from the pandemic. go through much more

The restructuring strategy is accompanied by a guidance settlement with creditor group Dad or mum Advert Hoc Team and some LATAM shareholders.

Reporting by Maria Ponnezhath in Bengaluru Enhancing by Sam Holmes

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