Latam Airlines, the largest air transport group in Latin America, asked a judge on Monday (13) to approve US$ 2.75 billion in new loans to finance its exit from bankruptcy.
Bankruptcy Judge James Garrity in Manhattan will review the application during a court hearing on June 23.
Latam, which has operating units in Chile, Brazil, Colombia and Peru, says it has commitments of $2.75 billion in loans from JPMorgan, Goldman Sachs, Barclays, BNP Paribas and Natixis, with an additional deal of $1, 17 billion to refinance and extend its loans.
“This commitment guarantees us the necessary funding to complete our restructuring plan and, very importantly, with a degree of flexibility that allows us to optimize existing market conditions,” said Latam Airlines Chief Executive Roberto Alvo in a statement on the Saturday.
In addition to the judge approving the loans, Latam awaits Garrity’s decision on the approval of its overall restructuring plan.
Latam needs to secure its loans before exiting bankruptcy and continue to raise funds through an $800 million equity offering, according to court documents.
Created in 2012 with the merger of Chilean LAN with Brazilian TAM, Latam was one of the three main airlines in Latin America to seek legal protection in New York two years ago, amid the economic consequences of the pandemic. The other two, Aeromexico and the Colombian Avianca, came out of judicial recovery in recent months.
Source: CNN Brasil
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