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

Sign up now for No cost limitless entry to reuters.com

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.

Register now for Free limitless entry to reuters.com

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.

Sign up now for Free of charge unrestricted access to reuters.com

Reporting by Maria Ponnezhath in Bengaluru Enhancing by Sam Holmes

Our Benchmarks: The Thomson Reuters Rely on Rules.