The LATAM Group informed today (11) that, as part of its Chapter 11 reorganization process in the United States Court, on February 10, 2022, it signed an amendment to the restructuring agreement called the Restructuring Agreement (“RSA”), dated November 26, 2021.
The second modification of the RSA is intended to incorporate as parts of the RSA the current of the Ad Hoc Group of LATAM security holders represented by White & Case LLP (“W&C”).
This includes a group of holders of U.S. unsecured bonds issued by LATAM Finance Ltd. maturing in April 2024, for a principal amount of US$700 million, and a group of holders of U.S. unsecured bonds issued by LATAM Finance Ltd. with a maturity date of March 2026, for a principal amount of US$800 million.
Due to this second modification of the RSA, the Ad Hoc Group of LATAM bondholders represented by W&C agreed, among other things: to the Reorganization Plan presented by LATAM, to instruct the representative of the holders of the LATAM 2024 bonds and the LATAM 2026 bonds to withdraw its objection to the Disclosure Statement and not to take any other action inconsistent with the Plan of Reorganization, and to direct W&C to withdraw its substantial contribution motion filed with the Court.
In addition, the Ad Hoc Group of LATAM security holders has agreed to withdraw its objections to the Reorganization Plan submitted by LATAM, the Disclosure Statement and other actions pending before the Court.
In turn, LATAM has agreed to pay, among other matters, on the effective date of the Reorganization Plan, certain legal and professional fees to the Ad Hoc Group of LATAM security holders represented by W&C, subject to certain limits.
The Reorganization Plan presented by LATAM at the end of last year constitutes the path to emerge from the Chapter 11 process, in compliance with US and Chilean legislation.
In turn, the RSA, prior to the g of this second amendment, already had the of creditors representing more than 70% of LATAM's secured credits, bondholders representing approximately 48% of LATAM 2024 bonds and LATAM bonds 2026, and some shareholders that hold more than 50% of LATAM's capital.
With the g of this second amendment to the RSA, the Reorganization Plan presented by LATAM now has the of more than 67% of the LATAM 2024 and 2026 bonds.
Once the Chapter 11 process is completed, LATAM will emerge stronger, with a much more solid capital structure than before the pandemic, which will allow the company to continue promoting the resumption of its operations and sustainability initiatives.
O Reorganization Plan presented by LATAM at the end of last year constitutes the path to emerge from the Chapter 11 process, in accordance with US and Chilean legislation.
In turn, the RSA, prior to the g of this second amendment, already had the of creditors representing more than 70% of LATAM's secured credits, bondholders representing approximately 48% of LATAM 2024 bonds and LATAM bonds 2026, and some shareholders that hold more than 50% of LATAM's capital.
With the g of this second amendment to the RSA, the Reorganization Plan presented by LATAM now has the of more than 67% of the LATAM 2024 and 2026 bonds.
Once the Chapter 11 process is complete, the LATAM says it will come out stronger, with a much more solid capital structure than before the pandemic, which will allow the company to continue to promote the resumption of its operations and sustainability initiatives.
