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Progress in Chapter 11 tranche financing for LATAM Airlines — MercoPress

Development in Chapter 11 tranche financing for LATAM Airlines

Thursday, July 9th 2020 – 10:45 UTC


LATAM Airlines Group S.A. (‘LATAM’) now introduced the 2nd tranche financing proposal to the Court of the Southern District of New York, as part of the Chapter 11 method. Tranche A quantities to US$1.3 billion that was committed by Oaktree Money Management L.P. and its affiliate marketers. This proposal will have to be reviewed and accredited by the court docket in the coming days.

Tranche A complements Tranche C, which contains US$900 million that was committed by shareholders Qatar Airways and the Cueto and Amaro families when LATAM and its affiliate marketers in Chile, Colombia, Peru, Ecuador and the United States submitted for Chapter 11 in May possibly 2020. Tranche C contains an upsize of US$250 million that will enable other shareholders in Chile to take part, when it is approved by the courtroom.

Combined, Tranches A and C meet up with LATAM’s funding requirements in the context of the COVID-19 crisis and, as a consequence, it is hoped that fiscal assist will not be necessary from governments. Even so, LATAM Airways Brazil will continue on advancing negotiations with Brazil’s Nationwide Lender for Economic and Social Growth (BNDES).

“Today, LATAM has taken a sizeable step in making certain its operational continuity by securing the dedication of Oaktree Funds Administration and its affiliate marketers for the total financing of Tranche A. We hope that, jointly with Tranche C, it will be accepted by the courtroom in the coming months,” said Roberto Alvo, CEO of LATAM Airlines Team. “The assistance of two of our principal shareholders has been vital, sparking an curiosity and determination from traders that we did not have a thirty day period in the past. This exhibit of self confidence in the group’s foreseeable future has enabled us to safe all the assets that are essential to carry on functioning for the duration of the disaster and as demand recovers, to successfully full the Chapter 11 system.”

LATAM Airlines Brazil information for Chapter 11

LATAM Airlines Brazil now started a voluntary reorganization process as part of Chapter 11 protection in the United States to restructure its credit card debt and successfully handle its aircraft fleet, although enabling operational continuity. LATAM Airlines Group and its affiliate marketers in Chile, Peru, Colombia, Ecuador and the United States are presently element of this process, which started on May well 26, 2020.

LATAM Airline Brazil’s final decision is a normal move in light of the continuing COVID-19 pandemic and presents the very best solution to access the proposed DIP financing that will present the applications to adapt to this new fact.

LATAM Airways Brazil will carry on to operate passenger and cargo flights typically, as LATAM Airways Team and its affiliates have finished given that they entered Chapter 11. Furthermore, when authorized by the court, LATAM Airlines Brazil will go on to fulfil its commitments to prospects, with tickets, its regular flyer application and flexibility procedures all remaining honored. Likewise, obligations to employees, like shell out and benefits will be revered. (eTN)



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