LATAM to Exit Chapter 11 Bankruptcy

October 16, 2022

Today, LATAM Group confirms that it plans to exit its Chapter 11 proceeding in the United States on November 3, which it entered in May 2020 after the strong impact of the pandemic. This process will allow the group to emerge more agile, with a more competitive cost structure, adequate liquidity to face the future, with approximately US$10.3 billion in equity, and close to US$6.9 billion in debt. On said date, LATAM Airlines Group S.A. (LATAM) will give the shares and convertible bonds to the shareholders and creditors as appropriate, and will pay certain obligations such as the Junior DIP and other fees as established in the Reorganization Plan.

In this regard, it should be remembered that all the instruments considered in the Reorganization Plan and the remainder to be placed are fully backed by the supporting shareholders (Delta Air Lines, Qatar Airways, Cueto Group) and by the supporting creditors (Evercore group and certain holders of local bonds), ensuring that LATAM will have the necessary funds to successfully exit the Chapter 11 proceeding. Today, notices were sent to the supporting parties through which the supporting creditors are requested to fund approximately US$3.6 billion and the supporting shareholders approximately US$736 million.

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Written by: Sohail Sawlani
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