The shares of the LATAM Group have suffered a great devaluation since the presentation of the Company's Judicial Recovery Plan, last Friday (26/11). Accumulating a drop of more than 50% in closings since last Tuesday (13), the shares are currently traded at values close to 0,4ç of a dollar.
The main reason for the 45,4% drop in shares since Friday (26) is a detail in LATAM's Recovery Plan, which points to a multiplication of the company's capital through the issuance of more shares, reducing the value of each currently existing.
Last Monday (29) the shares fell by 84% in value, right at the beginning of the day, reaching the lowest level since April 1999. However, the shares corrected their value throughout the day, closing with a drop of 45,3% from the closing value on Friday.
This Tuesday alone, the shares ed a fall of 41,43% at 15:55 pm, quoted in New York at 0,41ç of a dollar. Seven days ago the shares were quoted at US$1,50, on average.
The Plan proposes the injection of US$ 8,19 billion ao group through a combination of new equity, convertible bonds and debt, which will allow the group to exit Chapter 11 with adequate capitalization to execute its business plan.
Upon exit, LATAM is expected to have total debt of approximately US$7,26 billion and liquidity of approximately US$2,67 billion. The Group has determined that this is a conservative debt level and adequate liquidity in a period of continued uncertainty for world aviation, which will better position the Group for future operations.
