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Montevideo, May 26th 2024 - 14:47 UTC



LATAM obtains financing to reorganize the group and begin exiting bankruptcy

Thursday, September 30th 2021 - 20:57 UTC
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Latam received up to US$750 million of new financing from a group of financiers Latam received up to US$750 million of new financing from a group of financiers

On Wednesday, LATAM airlines announced it had obtained committed financing of US$ 750 million as part of the Chapter 11 proceedings, allowing the company to improve its financing conditions and to start exiting the bankruptcy process

Latam, despite being the region's largest and most efficient airline went into Chapter 11 on May 2020 because of the impact of the pandemic. The group and its six subsidiaries, Brazil, Colombia, Chile, Ecuador, Peru, and United States, have since been working on the reorganization plan in three tranches.

This month Latam received new financing from a group of financiers composed of Oaktree Capital Management, Apollo Management Holdings, among others, presented a new DIP (Debtor in Possession), financing of up to US$750 million.

“We received several offers from investors who have expressed their interest in supporting us in our Chapter 11 process. This proposal will allow us access to better financing conditions, generating significant cost savings and benefiting our creditors and LATAM,” said Ramiro Alfonsín the Group's CFO.

Previously Latam received DIP financing of US$ 2,4bn, composed of Tranche A, with US$ 1,3bn committed funds and Tranche C with up to US$ 1,15bn, and to date the airline has withdrawn some US$ 1,65bn from both tranches.

The incorporation of Tranche B has yet to be approved by the bankruptcy court, and the group said it was still open to other financing options under Tranche B.

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