latin american airlines, One of the largest companies in Latin America, reported that it has secured new financing of up to $750 million as part of its exit plan Chapter 11 of the United States Bankruptcy Code, Which the company resorted to last year due to the epidemic.
The motion which has not yet been approved by the court hearing the case, “It will allow access to better financing terms, significant cost savings and benefit our creditorsGroup Vice President of Finance, Ramiro Alfonsin, said in a statement.
(See: Latam Colombia to take back 100% of pre-pandemic show in July).
The resources in the credit line have been acquired under tranche B of DIP (debtor-acquiring) financing”At more competitive rates and terms than those obtained for Tranches A and C, which will allow you to improve the cost of financing under Chapter 11The company explained.
Latam’s Board of Directors unanimously approved the offer of a group consisting of Oaktree Capital Management, Apollo Management Holdings “And some of the funds, accounts and entities that I have recommended“, pointed out.
(See: Copa Airlines will open commercial routes to Cúcuta.)
Latam added that the DIP financing will consist of the existing lines of $1.3 billion in tranche A and $1,150 million in tranche C, and so far $1,650 million has been drawn from tranches A and C.
In May 2020 and voluntarily, The group is welcomed to Chapter 11 of the United States Bankruptcy Code, a formula that allows a company that cannot pay its debts to restructure without pressure from creditors.
The decision included both parents (listed on the New York Stock Exchange and the Santiago de Chile Stock Exchange) as well as its subsidiaries in Chile, Peru, Colombia, Ecuador, and the United States of America.
(See: Wingo, the airline with the most complaints between January and May.)
Born in 2012 from the merger between Chilean Lan and Brazil’s Tam, before the pandemic, LATAM traveled to 145 destinations in 26 countries and operated nearly 1,400 daily flights, carrying more than 74 million passengers annually.
with the epidemic, reduced its work by up to 95% It ended 2020 with a 58.4% decrease in its operating income and a net loss of $4,545.9 million.
(See: Avianca incurs losses: $146 million in the first half.)