An Airline files a restructuring plan in order to get out of bankruptcy

Author: Web Desk

In a bid to leave its Chapter 11 bankruptcy, Chile’s LATAM Airlines Group presented a reorganisation plan on Friday, requesting an $8.19 billion infusion of capital into the company.

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 complete, we have reached a significant juncture on the road to a more secure financial future,” said Roberto Alvo, CEO of Latin America’s largest airline.

Recently, LATAM said it received several offers to fund the exit from Chapter 11 bankruptcy, each of which is 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.

LATAM plans to have total debt of roughly $7.26 billion and liquidity of about $2.67 billion when it emerges from Chapter 11, according to the company’s statement.

The indebted corporation, based in Santiago, recorded losses of $692 million in the third quarter, as the epidemic continued to pose issues.

The restructuring plan is accompanied by a support agreement with creditor group Parent Ad Hoc Group and some LATAM shareholders.

Share
Leave a Comment

Recent Posts

  • Lifestyle

Mohini calls AR Rahman a ‘father figure’ amid link-up rumours

Amid the link-up speculations of the two, Indian bass player Mohini Dey termed music maestro…

2 mins ago
  • Lifestyle

Kaley shares why she rehomed her dog Shirley

Kaley Cuoco is sharing a difficult decision in her life. The Big Bang Theory alum…

2 mins ago
  • Lifestyle

Javed Sheikh makes a surprising revelation about his on-screen getup

Veteran film star of Pakistan Javed Sheikh made a surprising revelation regarding his on-screen getup,…

2 mins ago
  • Lifestyle

Ayeza addresses rumours about her debut in Bollywood

Speculations are rife that television star Ayeza Khan might be making her Bollywood debut opposite…

3 mins ago
  • Lifestyle

Pakistani musicians are jealous of me: Chahat Fateh Ali Khan

Chahat Fateh Ali Khan, who rose to prominence with his unique and funny singing style,…

3 mins ago
  • Lifestyle

Citizens turn up at soup stalls as cold weather intensifies

The residents were turning to the local soup stalls for warmth and comfort as the…

4 mins ago