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Montevideo, November 30th 2022 - 13:48 UTC

 

 

Leveraged loan to help Latam airlines exit from bankruptcy

Friday, September 23rd 2022 - 10:19 UTC
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Latam entered Chapter 11 protection in New York more than two years ago as one of the largest bankruptcies caused by the Covid-19 pandemic. Latam entered Chapter 11 protection in New York more than two years ago as one of the largest bankruptcies caused by the Covid-19 pandemic.

Fresh air for highly indebted Latam, probably still the largest Latin American air carrier. In effect, a group of banks led by Goldman Sachs Group Inc. has launched a leveraged loan sale that will support Latam Airlines Group SA’s exit from bankruptcy.

The US$ 750 million term loan will repay existing debtor-in-possession facilities and cover general corporate purposes, according to a person familiar with the matter, who asked not to be identified discussing a private transaction.

The Santiago-based airline company won court approval for a restructuring in June after a struggle to win lender support. The carrier entered Chapter 11 protection in New York more than two years ago as one of the largest bankruptcies caused by the Covid 19 pandemic.

Latam is back in the money market following on a recent US$ 4 billion agreement for the purchase of Citrix Systems Inc. with a huge discount for investors, who are demanding a risk premium to purchase risky assets as fears of a recession round the corner increase. Debtors have been invited this Friday to continue negotiations on the loan price according to sources linked to the deal. .

Categories: Economy, Latin America.
Tags: COVID-19, Latam.

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