LATAM Airlines Group and its s in Brazil, Chile, Colombia, Ecuador, Peru and the United States today obtained an important breakthrough in their Chapter 11 proceeding, following the approval of the Disclosure Statement by the Court in the United States, under its Chapter 11 proceeding.
Said decision establishes that the information provided by LATAM to the process is sufficient for the creditors to start voting on the Reorganization Plan presented on November 26, 2021.
Thus, the expectation is that in the coming weeks the voting process for the Reorganization Plan (Request Period) will begin, during which time its approval will be sought. This represents a fundamental step towards LATAM's exit from Chapter 11.
The Court has also scheduled the Confirmation Hearing for May 17-18, 2022, when the Court will review the reorganization plan, which is the latest milestone in the process in the United States. LATAM expects to successfully exit Chapter 11 during the second half of 2022.
It is worth ing that this resolution comes after the Court approved the modification and the new consolidated text of the DIP credit agreement between LATAM and its financiers on March 15, 2022 (Term Loan of the Debtor in Possession of a Superpriority Agreement) which will allow the LATAM group to access US$3,7 billion in liquidity and refinance its existing DIP credit agreement.
In addition, the new credit agreement extends the validity period of the first one, according to the calendar that LATAM has, with the objective of emerging from the Chapter 11 Process.
In turn, last week, the Court approved the commitment and agreements (backstop commitment agreements) in of the reorganization and financing plan proposed by LATAM and some of its direct and indirect subsidiaries. These agreements represent approximately $5,4 billion in committed funds.
The Plan, Disclosure Statement, and other material relevant to the case can be accessed at cases.primeclerk.com/LATAM.
