LATAM files for bankruptcy in US

LATAM Airlines Group and its affiliates in the United States, Chile, Peru, Colombia and Ecuador are moving forward with reorganization and debt restructuring in the U.S. under Chapter 11 bankruptcy. Like virtually every global combination carrier, the Chile-based group has been severely impacted by the COVID-19 pandemic. LATAM is also not the first Latin American airline to file for Chapter 11 during the pandemic — Avianca announced its own filing earlier this month . The decision to file for bankruptcy in the U.S. under Chapter 11 allows LATAM to continue its passenger and cargo flights, subject to demand and travel restrictions, without necessarily requiring the company to liquidate assets. “LATAM intends to rely on specific relief that will allow it to pay its employees, meet benefit obligations, pay critical suppliers and conduct other day-to-day business operations as the group works with the court and creditors to resolve its case,” the company said in a statement. “With Chapter 11 protection, the group’s management team will remain in place and will continue to lead LATAM through the reorganization and transformation process.” The group has also secured financial support from shareholders including Qatar Airways and the Cueto and Amaro families, for up to $900 million in debtor-in-possession (DIP) financing. DIP financing plans, which are targeted at providing liquidity for businesses to continue operating during reorganization, require court approval. LATAM said it had about $1.3 billion in cash on hand at the time of filing and would welcome other shareholders interested in providing additional financing to the extent permitted under the law. LATAM has made efforts to mitigate the impact of widespread passenger cancellations by expanding its cargo network, increasing frequencies to Europe and adding new destinations to its freighter network. LATAM Cargo operates eight 767-300Fs and three 767-300BCFs, and has also been operating cargo-only flights with its widebody passenger aircraft.

LATAM files for bankruptcy in US

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LATAM files for bankruptcy in US

Austria to host first German language airfreight academy

WFS and Qatar Airways partner on PPE in France

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