LATAM Airlines Group presented its reorganization plan

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LATAM Airlines Group presented its reorganization plan
Source: LATAM Airlines
November 29, 2021

The firm will strengthen the financial statements, liquidity and capital structure for future operations

LATAM Airlines Group SA (“LATAM”) (SSE: TM) and its subsidiaries in Brazil, Chile, Colombia, Ecuador, Peru and the United States today announced the presentation of a Reorganization Plan (“the Plan”), which describes the way for the group to get out of Chapter 11, in accordance with US and Chilean laws.

The plan is accompanied by a Restructuring Support Agreement (“RSA”) entered into with the Ad Hoc Group of Parent Creditors, which is the largest group of unsecured creditors in these Chapter 11 cases, and some of LATAM's shareholders.

The RSA documents the agreement between LATAM, the aforementioned holders of more than 70% of the parent's unsecured credits, and the holders of approximately 48% of the US bonds dated 2024 and 2026, and some shareholders that have more than 50% of the ordinary capital, subject to the application of the groups' definitive documentation, and to the corporate approvals by said shareholders. As they have done throughout the entire process, all group companies continue to operate to the extent that travel conditions and demand allow.

“The last two years have been characterized by difficulties around the world: we have lost friends and family, colleagues and loved ones. This is how we face the greatest crisis in the aviation sector, in which the industry practically came to a standstill. Although our process has not yet finished, we have reached a fundamental milestone on the way to a more solid financial future ”, stated Roberto Alvo, CEO of LATAM Airlines Group SA“ We thank those who participated in the mediation process to reach this result , which includes all interested parties and provides a structure that conforms to US and Chilean legislation. The fact that they have injected significant new capital into our business shows their support and faith in our long-term prospects.


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