The Latam group airlines group reported that the Federal Court from the southern district of New York approved the extension of its restructuring plan to September 15, as part of the bankruptcy protection process initiated last year.
Latam filed for Chapter 11 protection in United States following the consequences on world travel caused by the ongoing pandemic. Originally the company was supposed to deliver the restructuring plan by the end of last month.
The extension request is a common alternative contemplated within the process and does not modify the intention of the LATAM group to exit Chapter 11 by the end of this year, the firm said in a statement.
Latam also told Chilean securities regulators it has requested a second disbursement for US$ 500 million under the DIP Credit Agreement (Debtor-In-Possession). The airline said the additional funds were necessary given the extension of the health and mobility restrictions imposed by the authorities in the different countries in that the Company operates, as well as the analysis of the Company's liquidity projection .
Latam added an optimistic projection for the travel market in coming months as vaccination advances in several Latin American countries.
The Group operates in Brazil, Chile, Colombia, Ecuador and Peru although it is in the process of abandoning Argentina. Considered the main airline in the region it also operates in Europe, United States and the Caribbean.