Latam Airlines ended its Chapter 11 process in the USA

On Thursday, November 3, the Latam group announced it had ended the process known as Chapter 11 in the United States (equivalent to judicial restructuring in Brazil).

The process was initiated voluntarily in May 2020 to reduce business debt and secure new sources of financing for the Chilean airline amid difficulties caused by the covid-19 pandemic.

The company also said it is emerging from the reorganization as a more efficient group, with liquidity of more than US$2.2 billion and approximately US$3.6 billion less debt on its balance sheet – a 35% reduction from the period before the process.

“Today is an important milestone for Latam. We are pleased to complete a significant transformation and exit our reorganization process with a strengthened financial position, and a renewed commitment to operational excellence,” group CEO Roberto Alvo said in the document.

The Latam group reached an air network of 144 destinations in 22 countries in October and expects to recover more than 85% of its global capacity by the end of 2022, compared to 2019 (the period before the pandemic).

Between 2021 and 2022, it added ten new destinations in Brazil and plans to operate 36 new routes by 2023.

According to the document, Latam Cargo and cargo affiliates are in the midst of an expansion plan that will allow them to increase their respective fleets from 11 Boeing 767-300F aircraft in 2019 to a total of 20 Boeing 767-300F aircraft in 2024.

Recently, the group implemented a partnership with Delta that allows passengers to access more than 300 destinations between the United States/Canada and South America (Brazil, Chile, Colombia, Paraguay, Peru, and Uruguay).

“The agreement will allow the airlines to increase their level of cooperation in the mentioned markets to have a greater number of routes, more and better connections, and strengthen the benefits of frequent flyer programs,” says the Chilean group.

According to the company, on November 15 will be held an Extraordinary General Meeting to renew the board of directors of the Latam Group.

With information from InfoMoney

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