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Bankruptcy Court USA approved the Reorganization Plan presented by LATAM Airlines in the context of its reorganization proceeding under the Chapter 11.
LATAM Airlines Group and its subsidiaries in Brazil, Chile, Colombia, Ecuador, Peru and USA announced that the plan presented in New York was approved, backed by almost all LATAM creditors, the Plan is the result of months of negotiations between the main stakeholders, which even considered an extensive period of mediation. The Plan complies with US legal requirements. and Chile. The confirmation order issued today by the US Court. represents the last milestone in the United States of the process of the Chapter 11 initiated by LATAM to ensure its long-term sustainability.
“We are very satisfied 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”, Robert Alvo said, CEO de LATAM Airlines Group S.A.
LATAM now focuses on the conclusion of the pending stages in Chile, including the Extraordinary Shareholders' Meeting to approve the new capital structure, the registration of shares and convertible bonds in the Financial Market Commission (CMF) and the Preemptive Rights Offer, those that 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 that is contemplated entails.
Once it's effective, the LATAM Plan will inject approximately US$8 billion through a combination of capital increase, the issuance of convertible bonds and new debt. This includes the US$5.4 billion of financing backed by major shareholders (Delta Air Lines, Qatar Airways and Cueto Group) and the main creditors of LATAM (this is, the creditors represented by the ad hoc group of collateral creditors and certain local bondholders).
LATAM's exit from the Chapter process 11 expected during the second half of 2022.
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