Home » NEWS » LATAM obtains financing to reorganize the group and begin exiting bankruptcy — MercoPress

LATAM obtains financing to reorganize the group and begin exiting bankruptcy — MercoPress


LATAM obtains financing to reorganize the group and start out exiting personal bankruptcy

Thursday, September 30th 2021 – 20:57 UTC

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Latam obtained up to US$750 million of new funding from a team of financiers

On Wednesday, LATAM airways declared it experienced received committed financing of US$ 750 million as aspect of the Chapter 11 proceedings, letting the company to make improvements to its financing situations and to begin exiting the personal bankruptcy system

Latam, despite becoming the region’s premier and most productive airline went into Chapter 11 on Might 2020 mainly because of the affect of the pandemic. The team and its 6 subsidiaries, Brazil, Colombia, Chile, Ecuador, Peru, and United States, have considering the fact that been performing on the reorganization plan in three tranches.

This month Latam gained new funding from a team of financiers composed of Oaktree Cash Management, Apollo Administration Holdings, between others, presented a new DIP (Debtor in Possession), financing of up to US$750 million.

“We obtained numerous provides from investors who have expressed their fascination in supporting us in our Chapter 11 process. This proposal will allow for us obtain to improved funding ailments, building major expense discounts and benefiting our collectors and LATAM,” said Ramiro Alfonsín the Group’s CFO.

Earlier Latam gained DIP funding of US$ 2,4bn, composed of Tranche A, with US$ 1,3bn fully commited money and Tranche C with up to US$ 1,15bn, and to day the airline has withdrawn some US$ 1,65bn from both equally tranches.

The incorporation of Tranche B has however to be authorised by the bankruptcy court, and the team mentioned it was even now open to other financing possibilities underneath Tranche B.





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