Latam is authorized in the US to start voting on judicial recovery plan

The Latam group reported that it has achieved an important advance in the scope of Chapter 11 in the United States, with the approval of the Disclosure Statement by the North American Court.

According to a statement, the aforementioned decision establishes that the information provided by Latam for the process is sufficient for creditors to start voting on the reorganization plan presented on November 26, 2021.

With this, the expectation is that in the coming weeks the process of voting on the plan will begin. “This represents a fundamental step towards Latam’s departure from Chapter 11”, says the airline.

The court has scheduled the Confirmation Hearing for May 17 and 18, 2022, when the Court will evaluate the reorganization plan, this being the last milestone in the process in the United States.

“Latam expects to successfully exit Chapter 11 during the second half of 2022,” it says in a statement.

In a note, the airline highlights that the resolution comes after the court has approved the modification and the new consolidated text of the DIP credit agreement (debtor in possession) between Latam and its lenders on March 15, 2022, which will allow the group to access US$3.7 billion in liquidity and refinance its existing DIP credit agreement.

In addition, the new credit agreement extends the validity period of the first, according to Latam’s calendar.

Last week, the New York court approved the commitment and support agreements for the reorganization and financing plan proposed by Latam and some of its direct and indirect subsidiaries. These deals represent approximately $5.4 billion in committed funds.