LATAM Airlines presentó el plan de reorganizationón to reinforceá Financial statements, liquidity and capital structure for future operations.
Resolving concerns and purchase rumors by Azul, which finally indicatedó what:
«LATAM is too expensive and más allá of our budget»
These were the expressions of the CEO of Azul and they go hand in hand with what the CEO of LATAM himself said in a press conference with international media on sábad past revealedó:
«Azul's proposal was insufficient and incomplete».
Así the dilemma of what will beíhas potentially generated one of the groups toéaccused máBig Am'sérica, but for LATAM it is time to turn the tableságina and prepare to finally exit the embarked process of Capíleakage 11, for which I presentó officially su plan de reorganizationón.
LATAM y su plan de plan reorganizationón
With the objective of strengthening the financial statements, liquidity and capital structure, LATAM presentó your plan with the support of your creditors, what will allow youá go out during 2022 of the process.
LATAM Airlines Group S.A. and its subsidiaries in Brazil, Chile, Colombia, Ecuador, Perú and the United States announced the presentationón de un Plan de Reorganizationón (“the plan”), which describes the path for the group to leave Capíleakage 11, in accordance with US and Chilean laws. The plan goes alongñated a Restructuring Support Agreementón (“RSA” by its acronym in Englishés) held with the Ad Hoc Group of Parent Creditors, which is the largest group of unsecured creditors in these Cap casesíleakage 11, and some of the LATAM shareholders.
The plan proposes the injectionón of US$8.19 billion to the group through a combinationón of fresh capital, convertible bonds and debt, what to allowá the group leave the Capíleakage 11, with the appropriate capitalizationón to execute the business plan. After exiting the process, LATAM is expected to have total debt of approximately US$7.26 billion and liquidity of approximately US$2.67 billion . The group 1 has determined that this is a conservative level of debt and adequate liquidity in a period of continued uncertainty for aviation.óworld no, and what to leaveá the group in a better positionón for future operations. 1 The expectation of total debt isá cited based on debt «converted» and excludes convertible debt.
LATAM achieveá US$500 million in a new lísnow of crécompromised dito known as Revolving Credit Facility (RCF) and approximately US$2.25 billion in financing throughés of new debt resources, either through a new préterm stamo or new bonds.
The hearing is expected to approve the adequacyón from Declarationsón of Disclosureón of the Capeíleakage 11 and voting proceduresón be held in January 2022, with a specific calendaríI have to dependá of the Court. If the Declaration is approvedón of Disclosureón (Disclosure Statement), the group startá el proceso de petitionówhat to look forá you approveón of the plan by creditors.
LATAM requests that the hearing to confirm the plan be held in March 2022.
I really hope that Latam recovers soon., It is a historic airline and I think it is trying very hard to move forward and deserves to continue flying for many more years.
Definitely, the idea is that, come out stronger after CP11.