Latam Airlines receives the first disbursement of US$1.15 billion for its financial reorganization.
LATAM Airlines has received the first disbursement under the financial reorganization process for an amount of 1,150 million dollars (974 million euros), as reported by the company in a statement sent to the Chilean Financial Market Commission.
See also: Latam Airlines announces the reactivation of more international routes in October.
The money comes from the refinancing plan that LATAM is carrying out as a result of the Covid crisis, by which it maintains the initial financing commitment of up to 2,450 million dollars (2,076 million Euros) through a deferred term credit line and made up of two tranches, A, for an amount of 1,300 million dollars (1,102 million Euros); and C, which amounts to 1,150 million dollars (974.7 million Euros), EuropaPress reported.
See also: New York judge finally approves Latam Airlines’ $2.45 billion financing plan.
With respect to Section C, there are 150 million dollars (127 million euros) that the company has reserved for shareholders, creditors or new investors, excluding the Cueto group, the Eblen group, Qatar Airways and the group of investors led by Knighthead and Jefferies.
Thus, in order to carry out the access to such increase of Section C, LATAM has hired LarrainVial, which has structured a public investment fund that will be administered by Toesca and whose objective will be precisely to facilitate the investment in the increase of Section C to the referred shareholders, creditors or new investors of LATAM.
In addition, the registered shareholders of LATAM on the date in which the company took advantage of the reorganization process (May 26) will have preference for the purpose of investing in the increase of Tranche C, with the right to request quotas of the new fund up to a maximum of 3.43 dollars per share of the company.
On the other hand, of the total amount of Tranche A, 1,125 million dollars (953 million euros) will be provided by Oaktree Capital, while the remaining 175 million dollars (148 million euros) will be distributed by Knighthead and Jefferies.
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