LATAM Airways SA: recaps the most recent advances in DIP financing and the method Chapter 11

Santiago, Chile, October 5, 2021. On September 29, 2021, LATAM introduced that it had submitted on the identical day a financing proposal of as much as US $ 750 million beneath Tranche B of the DIP Financing Settlement to the Chapter Courtroom of the Southern District of New York (the “Courtroom”) which is within the means of listening to its Chapter 11 reorganization continuing beneath Chapter 11 of the USA Chapter Code (the “Chapter 11 continuing”) for approval. The intention was to make the most of favorable market situations, specifically a drop in monetary prices beneath the DIP financing contract. This proposal is to be thought of by the Courtroom on the subsequent listening to and, if authorized, the DIP funding will include the present strains of US $ 1.3 billion Tranche A and US $ 1.15 billion Tranche. C, along with tranche B for as much as $ 750 million.

This choice was motivated by LATAM with the intention to cut back the monetary prices of DIP funding and to offer the group flexibility to take care of the uncertainty ensuing from the COVID-19 pandemic. At this stage, LATAM doesn’t intend to attract greater than the US $ 2.45 billion initially obtained beneath Tranches A and C of the DIP financing contract; With the understanding, nevertheless, that the following attracts that LATAM will in the end make beneath DIP funding will rely on how the pandemic evolves within the coming months and its influence on operations.

Along with, and in parallel and independently of Tranche B of the DIP financing, as indicated in a big truth dated September 9, 2021, LATAM is at the moment negotiating with numerous events to agree on the phrases of its exit plan and its financing. for a profitable emergence of the Chapter 11 process. On this context, and as beforehand introduced, LATAM acquired a number of non-binding financing proposals, every for greater than US $ 5 billion, the funds of which might be utilized in half to refinance the financing of the DIP, and presumably different liabilities, and to have ample liquidity sooner or later. The full stage of liabilities and the capital construction ensuing from the LATAM reorganization plan will likely be recognized as soon as it has been negotiated. Primarily based on the progress of negotiations so far, it’s probably that there will likely be a capital improve and subsequently a considerable dilution of the shares at the moment issued by LATAM. The relative place of the shares at the moment issued by LATAM within the new capital construction of LATAM will rely on the negotiations of the plan.

LATAM plans to finalize a very powerful parts of its reorganization plan this yr. Any additional progress and information concerning the occasions will likely be notified to the market sooner or later.

ABOUT THE LATAM AIRLINES GROUP

LATAM is the principle group of airways in Latin America with a presence in 5 home markets within the area: Brazil, Chile, Colombia, Ecuador and Peru, along with worldwide operations in Latin America and between it and Europe, the States United and the Caribbean.

The group has a fleet of Boeing 767, 777, 787, Airbus A321, A320, A320neo and A319.

LATAM Cargo Chile, LATAM Cargo Colombia and LATAM Cargo Brazil are the cargo subsidiaries of LATAM Airways. Along with getting access to the passenger compartments of the LATAM Airways group, they’ve a fleet of 11 freighters, which can steadily improve to a complete of 21 freighters by 2023. They function on the LATAM group community in addition to on worldwide routes. that are solely used for delivery. They provide a contemporary infrastructure, all kinds of companies and safety choices to fulfill all buyer wants.

For press inquiries, write to [email protected]. Extra monetary data is out there at www.latamairlinesgroup.web

www.latam.com

Disclaimer

LATAM Airways Group SA printed this content material on 05 October 2021 and is solely chargeable for the data it comprises. Distributed by Public, unedited and unmodified, on 06 October 2021 04:25:06 PM UTC.

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