LATAM Airlines Group has obtained a financing proposal of up to $750 million as part of its efforts to exit bankruptcy protection.
The latest offer is at more competitive rates and conditions than financing obtained under two previous rounds, the airline said in a statement on September 29, 2021.
“We received several offers from investors who have expressed their interest in supporting us in our Chapter 11 process,” LATAM Airlines Group CFO, Ramiro Alfonsin, commented. “This proposal will allow us access to better financing conditions, generating significant cost savings and benefiting our creditors and LATAM.”
The proposal comes from a group of financiers composed of Oaktree Capital Management, Apollo Management Holdings, plus certain funds, accounts and entities advised by them, LATAM revealed.
LATAM filed for bankruptcy protection in May 2020 under Chapter 11 in the United States as the pandemic grounded operations.
LATAM said the bankruptcy process will allow its airlines to adjust their operations to the new demand environment and restructure their finances, “enabling them to emerge more agile, resilient and sustainable in the new, post-pandemic era.”
On September 9, 2021, the airline group announced details of a five-year business plan which envisages it returning to 2019 levels of profit by 2024. It has also announced plans to buy 28 Airbus A320neo aircraft to modernize its fleet.
The airline group also announced on September 9, 2021, that it has asked for more time, until October 15, 2021, to file a reorganization plan with the court overseeing its bankruptcy process.