The LATAM Group won yet another victory at the New York Bankruptcy Court. This past Tuesday (08/02) Judge James Garrity authorized the exclusive analysis of LATAM's Judicial Reorganization Plan until March 07.
With this decision, the company will have priority to negotiate its plan, presented in November and approved by the court at the end of January, with the airline's creditors and investors. On the other hand, alternative plans such as the one proposed by Azul will be left out of the judicial evaluation for the time being.
However, LATAM is still waiting for tomorrow (10) a judicial authorization involving the validity of the company's judicial recovery plan. Judge James Garrity will determine how long you can have this plan negotiated in Chapter 11.
Of the US$ 8,19 billion disclosed by LATAM, which the company plans to obtain, approximately US$1,37 billion is in Type B Convertible Notes, Type C Notes totaling US$6,81 billion.
Evercore's creditors will convert the debts of LATAM in a US$3,2 billion Type C note in exchange for a 20% debt payment by the company. Delta, Qatar Airways, Cueto Group and Eblen Group will fully Class B notes.
Foreign creditors can receive 100 cents on every dollar of debt when LATAM Chapter 11 ends, while Chilean domestic creditors will only receive 20 cents on the dollar. This measure is dissatisfying with some Chilean creditors who, in the minority, oppose the LATAM Group's Recovery Plan.
Upon departure, LATAM estimates that it should have total debt of approximately US$7,26 billion and liquidity of approximately US$2,67 billion.
Negotiation of the existing plan was led by investment firms Strategic Value Partners, Sculptor Capital Management and Sixth Street Partners. The plan gained from major shareholders, including Delta Air Lines Inc. and Qatar Airways.
With information The Globe.
Text by: Aeroflap
