The Chilean-Brazilian airline LATAM Airlines announced this Saturday a financial reorganization plan with an injection of 8.19 billion dollars, with the aim of getting out of the crisis that led it to file for Chapter 11 of the bankruptcy law of the United States.
“The plan proposes the injection of 8,190 million dollars to the group through a combination of fresh capital, convertible bonds and debt, which will allow the group to exit Chapter 11,” the company said in a statement released this morning.
LATAM’s plan includes the launch of an offer of 800 million dollars in preferential rights through the issuance of ordinary shares and the issuance of convertible bonds preferentially offered to the company’s shareholders for about 4,640 million.
Likewise, a new line of credit for 500 million and approximately 2,250 million in financing through new debt resources, either through a new term loan or new bonds.
In May of last year, LATAM Airlines – created in 2012 after the merger of the Chilean LAN and the Brazilian TAM – filed for Chapter 11 of the United States bankruptcy law, which allows a company that is not in a position to pay Your debts start a restructuring without pressure from creditors.
In September, a court in New York had approved a financing plan for LATAM for 2.45 billion dollars.
“We are grateful to 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,” said Roberto Alvo, director of the company.
A US court must endorse this reorganization plan at a hearing to be held next January. If approved, a “confirmation hearing” is expected two months later, the last step to conclude the judicial process in the United States.
After exiting the process, LATAM is expected to have a total debt of approximately 7,260 million dollars and liquidity of about 2,670 million.