LATAM Airlines Group and its s in Brazil, Chile, Colombia, Ecuador, Peru and the United States announce that the Bankruptcy Court for the Southern District of New York in the United States has approved the Reorganization Plan of the group presented by LATAM in its reorganization process under Chapter 11.
Backed by nearly all of LATAM's creditors, the Plan is the result of months of negotiations between key stakeholders, which included an extensive mediation period. The Plan meets the legal requirements of the United States and Chile.
The confirmation order issued today by the US Court represents the latest milestone in the US of the Chapter 11 process initiated by LATAM to ensure its long-term sustainability.
“We are very pleased with the confirmation of our restructuring plan by the judge. This is a very important step in the Chapter 11 exit process and we will continue to work intensively to complete the remaining steps in the coming months.” says Roberto Alvo, CEO of LATAM Airlines Group SA
A LATAM is now focused on implementing the measures and corporate acts necessary to complete the exit from the Chapter 11 reorganization process in the coming months.
This includes the approval at the Extraordinary Shareholders' Meeting of the new capital structure contemplated in the Plan, the registration of shares and securities in the securities of the Financial Market Commission of Chile (CMF) and the implementation of the respective periods of preemptive rights for the offer of shares and convertible bonds to current LATAM shareholders.
Once effective, the LATAM Plan will inject approximately US$8 billion through a combination of capital increase, issuance of convertible bonds and new debt. This includes financing of US$5,4 billion guaranteed by major shareholders (Delta Air Lines, Qatar Airways and Grupo Cueto) and by LATAM's major creditors (i.e., creditors represented by LATAM Parent's Ad Hoc Group of Creditors and certain local bondholders).
The company's exit from the Chapter 11 process is scheduled for the second half of this year.
