August 18, 2022

LATAM Airways Group SA, the biggest air transport group in Latin America, on Monday requested a chapter decide to approve $2.75 billion in new loans to fund the corporate’s exit from Chapter 11.

U.S. Chapter Decide James Garrity in Manhattan will evaluate the request throughout a court docket listening to on June 23.

LATAM, which has working models in Chile, Brazil, Colombia and Peru, says it has commitments for $2.75 billion in loans from JPMorgan Chase Financial institution NA, Goldman Sachs Lending Companions LLC, Barclays Financial institution Plc, BNP Paribas, BNP Paribas Securities Corp and Natixis, with a further $1.17 billion settlement to refinance and lengthen its current chapter mortgage.

“This dedication secures us the complete quantity of financing required to finish our restructuring plan and, very importantly, with a level of flexibility that enables us to optimize current market circumstances,” LATAM Airways Chief Government Roberto Alvo mentioned in a press launch on Saturday.

Along with the decide approving the exit loans, LATAM is awaiting Garrity’s determination on whether or not to approve its general restructuring plan.

LATAM must safe its exit loans earlier than rising from chapter and persevering with to boost funds by means of a post-bankruptcy $800 million fairness providing, in line with court docket paperwork.

Born in 2012 from the merger of Chile’s LAN with Brazilian rival TAM, LATAM was certainly one of three main Latin American airways to hunt Chapter 11 safety in New York two years in the past amid the financial fallout of the pandemic. The opposite two, Mexico’s Grupo Aeromexico and Colombia’s Avianca SA, have each emerged from chapter prior to now six months.

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