LATAM Airlines Group and its subsidiaries in Brazil, Chile, Colombia, Ecuador, Peru and the United States announced that the US Bankruptcy Court for the Southern District of New York approved the group’s Plan of Reorganisation filed by LATAM in the context of its Chapter 11 reorganisation proceeding.
Backed by nearly all of LATAM’s creditors, the plan is the result of months of negotiations
among major stakeholders, which included an extensive mediation period. The Plan
complies with US and Chilean legal requirements. The confirmation order issued today by
the U.S. Court represents the latest milestone in the US Chapter 11 process initiated by
LATAM to ensure its long-term sustainability.
“We are very satisfied with the judge’s confirmation of our restructuring plan. This is a very
important step in the process to emerge from Chapter 11, and we will continue working hard to complete the remaining steps in the coming months,” said Roberto Alvo, CEO of LATAM Airlines Group S.A.
LATAM is now focused on the implementation of the corporate actions necessary to
complete the exit from the Chapter 11 reorganisation process in the coming months. This
includes approval at the Extraordinary Shareholders’ Meeting of the new capital structure
contemplated in the Plan, the registration of shares and bonds in the securities registry of
the Financial Market Commission (CMF) and the implementation of the respective
preferential offering periods of the convertible shares and bonds in favor of LATAM’s current
shareholders.
Once effective, the LATAM Plan will inject approximately $8 billion through a combination
of a capital increase, the issuance of convertible bonds and new debt. This includes $5.4
billion of financing backed by major shareholders (Delta Air Lines, Qatar Airways and Grupo
Cueto) and LATAM’s major creditors (i.e., the Parent Ad Hoc Group creditors and certain
local bondholders). LATAM’s exit from the Chapter 11 process is expected during the second half of 2022.
