LATAM plans to exit Chapter 11 on November 3

LATAM Airlines announced, on Saturday, that it plans to exit Chapter 11 on November 3, thus ending the restructuring it entered into in May 2020 as a result of the crisis unleashed by the pandemic and severe restrictions on the movement of well-established people. by governments.

They indicated from the group that they will emerge “more flexible and with a more favorable cost structure,” as well as about $10.3 billion in liquidity and about $6.9 billion in debt.

On November 3, LATAM will “deliver shares and convertible bonds to shareholders and creditors as applicable, and will pay certain obligations such as micro DIP and other fees as defined in the reorganization plan,” the statement detailed.

They also noted that “once the valid period for the priority option (“POPS”), the second round (“the second round”) expired and the creditors selected the redemption alternatives considered under the reorganization, LATAM sent funding notices to the supporting parties to terminate receipt of the 5.4 billion dollars of new funding detailed in the reorganization plan.”

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“Latin America” ​​reports the outcome of the election of Class 5 creditors in respect of Class C convertible bonds that require subscription of new funds. Finally, 36,215,217 non-joint creditors have written C convertible bonds,” the company’s statement continues.

“After considering the aforementioned election of creditors, in addition to the results announced yesterday by the COP and the second round, the remainder of the unsubscribed shares and convertible bonds that are considered as a contribution of new money are 31,349,388,220 shares, and 735 ,864,454 convertible bonds B and 6,827,128,295 convertible bonds C. The remaining subscription shall be made by parties supporting the reorganization plan in accordance with applicable laws and regulations.”

LATAM also notes that all financial instruments included in the plan and the rest to be put in place are fully backed by backing shareholders (Delta Airlines, Qatar Airways, Koito Group) and by backing creditors (Evercore Group and some local bondholders), ensuring that the airline gets Get the funds needed to successfully exit Chapter 11.

They concluded that “earlier today, notifications were sent to backers requesting creditor support to finance approximately $3.6 billion and support shareholders of approximately $736 million.”