LATAM Airlinesthe largest air transport group in Latin America, said on Wednesday that it obtained the support of almost all of its creditors for its reorganization plan that it is taking before a US court.
The airline explained that the agreement was presented to the New York court that is handling its case under Chapter 11 of the bankruptcy law, which it filed for in May 2020 due to the impact of the Covid-19 pandemic on its operations.
The agreement includes the holders of bonds issued in Chile, the Official Committee of Valista Creditors (UCC), the Ad Hoc group of LATAM creditors (led by Sixth Street, Strategic Value Partners and Sculptor Capital) and the main shareholders of the group, detailed in a statement.
“The agreement will allow the creditors who choose to receive the Class A Convertible Bonds or the Class C Convertible Bonds contemplated in the Reorganization Plan, to improve their recovery through an additional cash payment,” he explained.
The firm had presented the plan, which included a 99.9% dilution for current shareholders, in November last year.
Plan confirmation hearing is scheduled for May 17 and 18the last stage of the process that LATAM expects to have fully completed in the second part of the year.
The plan contemplates resources for 8,190 million dollars, through a capital increase, the issuance of three series of convertible bonds and new debt.
The company, based in Santiago and subsidiaries in Brazil, Colombia, Ecuador, Peru and the United States, reported the day before losses of 380 million dollars in the first quarter.