A restructuring plan in its effort to exit its Chapter 11 bankruptcy was filed by Chile's LATAM Airlines Group SA in which the airlines has proposed to infuse $8.19 billion as capital into the group.
According to the company’s statement issued on Friday about the plans, a combination of issuing new equity, convertible notes and debt will make up the financial restricting proposal, and the company added that it has also set a target of launching an $800 million equity rights offering to its existing shareholders once the reconstructions plan is approved by courts.
"While our process is not yet over, we have reached a critical milestone in the path to a stronger financial future," said Roberto Alvo, chief executive of the largest airline in Latin America.
In recent weeks, a number of proposals for funding so that it can exit from Chapter 11 bankruptcy has been received by LATAM, the airline said, and added that each of the proposals were worth more than $5 billion.
With the global travel coming to a virtual halt last year with the spread of the Covid-19 pandemic throughout the world which hit the businesses of airlines very hard, Chapter 11 bankruptcy protection was filed by the group in May last year in New York.
The company said in the statement that if and when it manages to get out of Chapter 11, it would aim to possess a total debt of about $7.26 billion along with a liquidity of around $2.67 billion.
For the third quarter of the current year, a net loss of about $692 million had been made by the airline which is headquartered in Santiago, Chile, even as the debt ridden company was still combating the financial hit from the pandemic.
A support agreement with creditor group Parent Ad Hoc Group and some LATAM shareholders are also included in the restructuring plan.
(Source:www.usnews.com)
According to the company’s statement issued on Friday about the plans, a combination of issuing new equity, convertible notes and debt will make up the financial restricting proposal, and the company added that it has also set a target of launching an $800 million equity rights offering to its existing shareholders once the reconstructions plan is approved by courts.
"While our process is not yet over, we have reached a critical milestone in the path to a stronger financial future," said Roberto Alvo, chief executive of the largest airline in Latin America.
In recent weeks, a number of proposals for funding so that it can exit from Chapter 11 bankruptcy has been received by LATAM, the airline said, and added that each of the proposals were worth more than $5 billion.
With the global travel coming to a virtual halt last year with the spread of the Covid-19 pandemic throughout the world which hit the businesses of airlines very hard, Chapter 11 bankruptcy protection was filed by the group in May last year in New York.
The company said in the statement that if and when it manages to get out of Chapter 11, it would aim to possess a total debt of about $7.26 billion along with a liquidity of around $2.67 billion.
For the third quarter of the current year, a net loss of about $692 million had been made by the airline which is headquartered in Santiago, Chile, even as the debt ridden company was still combating the financial hit from the pandemic.
A support agreement with creditor group Parent Ad Hoc Group and some LATAM shareholders are also included in the restructuring plan.
(Source:www.usnews.com)
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