A US court has approved LATAM Airline Group’s restructuring plan, meaning it can move forward with efforts to exit Chapter 11 bankruptcy proceedings.
“We are very satisfied with the judge’s confirmation of our restructuring plan,” Roberto Alvo, CEO of LATAM Airlines Group, said in a statement on June 18, 2022. “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.”
Latin America’s largest airline entered Chapter 11 bankruptcy protection in the United States in May 2020, citing the COVID-19 pandemic and the ensuing travel restrictions across the globe.
The restructuring includes an $8 billion plan to inject fresh capital via a capital increase, the issuance of convertible bonds and new debt. $5.4 billion of the financing is backed by major shareholders including Delta Air Lines, Qatar Airways and Grupo Cueto, as well as creditors.
LATAM expects to exit the Chapter 11 process during the second half of 2022, it said in the statement.
Fellow Latin American carriers AeroMexico and Avianca (AVHOQ) have also been through Chapter 11 proceedings.
