LATAM Airlines Group and its affiliate in Chile , Peru , Colombia , Ecuador and the United States initiated a voluntary reorganization and restructuring of their debt under Chapter 11 protection in the United States with the documentation of the Cueto and Amaro families and Qatar Airways , two of the great shareholder of LATAM . In igniter of the consequence of COVID-19 on the worldwide air industry , this reorganisation process provides LATAM with an opportunity to make with the group ’s creditors and other stakeholder to reduce its debt , access new reference of financing and continue operate , while enabling the group to transmute its business to this young realness .
The Chapter 11 financial reorganization process is a turn out sound fabric under which LATAM and said affiliates will have the chance to resize their operations to the new demand environs and reorganize their balance sheets , enabling them to emerge more nimble , resilient and sustainable . LATAM and its affiliate will continue flying as weather permit throughout the process .
“ LATAM figure the COVID-19 pandemic as a sizeable and profitable airline group , yet exceptional circumstances have leave to a flop in globular demand and has not only brought aviation to a virtual standstill , but it has also changed the diligence for the foreseeable future , ” say Roberto Alvo , Chief Executive Officer of LATAM . “ We have enforce a serial publication of difficult step to mitigate the impact of this unprecedented industry flutter , but ultimately this course represents the in force option to lie the right foundation for the future of our airline group . We are seem onward to a post - COVID-19 future tense and are focused on transforming our group to adapt to a new and evolving way of flight , with the wellness and prophylactic of our passengers and employees being paramount .
The group has secured the financial financial backing of shareholder , including the Cueto and Amaro families , which have go ties to LATAM , and Qatar Airways , to provide up to $ 900 million in debtor - in - self-command ( DIP ) financing . These partners have a wakeless reason of the diligence , the grouping and its operational challenges . Their support demonstrates a belief in LATAM and its affiliate and their long - term sustainability . To the extent allow by law , the group would receive other stockholder interested in participating in this process to provide extra financing . In addition , as of the filing , the group had approximately USD$1.3 billion in Johnny Cash on hand .
LATAM and its affiliates are also in discussion with their several government of Chile , Brazil , Colombia and Peru to assist in source additional funding , protect jobs where potential and minimize disruption to its operations . LATAM and its affiliate would like to thank its stockholder , employees , creditors and the communities it serves for their support to help secure the group ’s foresightful - term future tense . The group is convinced that this operation will take together these diverse stakeholder to build a Modern LATAM that is substantially site to succeed for years to come .
“ confront with the biggest crisis in the account of aviation , the Board has approved this path forward having analyzed all the usable alternatives to secure the sustainability of the radical . As we have adapted to young realities in the past tense , we are confident that LATAM will be able-bodied to win in the post - COVID-19 context and uphold to wait on Latin America , plug into the region with the world , ” said Ignacio Cueto , Chairman of LATAM ’s Board of Directors .
For more information : www . LATAMreorganizacion.com
