LATAM’s reorganization plan receives strong backing from creditors
LATAM Airlines Group together with its subsidiaries in Brazil, Chile, Colombia, Ecuador, Peru and the United States, reported on Friday the results of the vote on its Plan of Reorganization, which reached 82% of the number of creditor voters in the classes affected by the Plan and 65% of the number of creditor voters in the classes affected by the Plan. These results do not include RCF claim holders, who still have until May 10, 2022 to vote.
→ LATAM was Brazil’s most punctual airline in first quarter.
Over the past several months, LATAM has continued to engage in extensive negotiations and a mediation process, and has worked hard to resolve any concerns that have arisen with respect to the Plan. LATAM remains confident that the Plan is equitable and considers all stakeholders. If confirmed, the Plan would inject new funds into the group through a combination of equity, convertible bonds and debt, and would strengthen its balance sheet, liquidity and capital structure for future operations.
As previously announced, the confirmation hearing is scheduled for May 17-18, 2022, at which time the Court will evaluate the Plan, the latest milestone in the U.S. bankruptcy process. LATAM maintains a target completion of the process and exit from Chapter 11 in the second half of 2022.
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