Latam Airlines rises more than 10% on the stock market after approval of its reorganization plan

The actions of LATAM AIRLINES Revaluations above 10% are noted in the Santiago Stock Exchange’s session this Monday, after this weekend the United States Bankruptcy Court for the Southern District of New York approved the company’s financial reorganization plan and its subsidiaries in Brazil, Chile, Colombia, Ecuador, Peru and the United States.

Specifically, the airline’s titles are trading at 440 Chilean pesos, compared to 400 at the close of trading on Friday.

The plan, backed by almost all of the airline’s creditors, meets the legal requirements of the United States and Chile. The confirmation order issued by the US Court represents the last step in the process initiated by Latam Airlines, in order to guarantee its long-term sustainability.

Once it is effective, the airline’s plan will involve an injection of 8,000 million dollars through a capital increase, issuance of convertible bonds and new debt. This includes the $5.4 billion of financing backed by major shareholders (Delta Airlines, Qatar Airways and Grupo Cueto) and the main creditors of Latam, which are those represented by the ad hoc group of guarantor creditors and certain local bondholders.

Latam’s exit from the Chapter 11 process is expected during the second half of this year. “We are very pleased with the judge’s confirmation of our restructuring plan. This is a very important step in the process to get out of Chapter 11 and we will continue to work hard to complete the remaining steps in the coming months,” said the CEO of the airline, Roberto Alvo.

After the approval in the United States, Latam is now focusing on the extraordinary shareholders’ meeting in Chile to approve a new capital structure, the registration of convertible bonds in the Financial Market Commission (CMF) and the offer of preferential rights, which will be offered in accordance with the law in a preferential manner to all shareholders who want to participate in the new capital structure and thus avoid the consequences of the dilution of ownership that the capital increase entails. that is contemplated


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