Nov 27 (Reuters) – Chile’s LATAM Airlines Group SA (LTM.SN) said on Friday it has filed a reorganization plan, proposing an $8.19 billion infusion of capital into the group, in a bid to exit its Chapter 11 bankruptcy.
The financing proposal will include a mix of new equity, convertible notes and debt, the group said in a statement, adding that it intends to launch an $800 million equity rights offering to shareholders, upon confirmation of the plan.
“While our process is not yet over, we have reached a critical milestone in the path to a stronger financial future,” said Roberto Alvo, chief executive of the largest airline in Latin America.
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Recently, LATAM said it received several offers to fund the exit from Chapter 11 bankruptcy, each of which are worth more than $5 billion. The group filed for Chapter 11 bankruptcy protection in New York in May 2020 as world travel came to a halt amid the COVID-19 pandemic. read more
Upon emerging from Chapter 11, LATAM expects to have total debt of about $7.26 billion and liquidity of about $2.67 billion, the company said in the statement.
The Santiago-based company reported losses of some $692 million in the third quarter, as the indebted company was still battling challenges from the pandemic. read more
The restructuring plan is accompanied by a support agreement with creditor group Parent Ad Hoc Group and some LATAM shareholders.
Register now for FREE unlimited access to reuters.comRegisterReporting by Maria Ponnezhath in Bengaluru; Editing by Sam Holmes
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