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LATAM Airlines Gained Access To $2.45 Billion After An Agreement With A US Court

LATAM Airlines Gained Access To $2.45 Billion After An Agreement With A US Court

LATAM Airlines, ONE of South America's largest airlines, has reached a settlement with a US court that granted access to $2.45 billion to fight the impact of COVID-19, the company said.

"LATAM Group S. A. has received approval for its amended offer to Finance DIP (Debtor in Possession, a legal entity that filed for bankruptcy protection-ed.), submitted on September 17, 2020, in a New York court. The judge's decision... allows the group to access the $2.45 billion requested to combat the impact of COVID-19," the statement said.

LATAM CEO Roberto Alvo said that THE company is now beginning the stage of submitting a reorganization plan.

The company in late may request protection from creditors under Chapter 11 of the US Bankruptcy Code, thus launching a process of voluntary reorganization and restructuring of its debt. Chile's LATAM Airlines Group is considered one of the largest airlines in Latin America. The company's shares are traded on exchanges in New York and Santiago.

LATAM Airlines Group S.A. informed today, via material fact, that it has presented a modified debtor-in-possession (DIP) financing proposal to the Court of the Southern District of New York, which will enable the group to access the US$2.45 billion required to tackle the impact of COVID-19.

The proposal submitted by LATAM does not contemplate the equity conversion option for Tranche C, responding to the objection made by the honorable judge James L. Garrity Jr. In addition, it incorporates several of the lenders interested in participating in the group’s financing.

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