LATAM completes key step of process prior to exiting Chapter 11
Santiago (Chile), October 14, 2022.- Through a material fact sent to the Comisión para el Mercado Financiero (Commission for the Financial Market, CMF), LATAM Airlines Group S.A. reported the results of the preemptive rights period (the “POP”) for shareholders, which ended on October 12, and the Second Round, an option available to shareholders or assignees who subscribed shares in the POP and who expressed their intention to participate in said alternative, which was only available on October 13. Thus, LATAM completed this key step of its process prior to exiting from Chapter 11.
After the completion of the POP and the Second Round, the shareholders (or their respective assignees) subscribed 42,460,487,574 new shares, 17,868 Series G Convertible Notes, 636,975,241 Series H Convertible Notes and 83,777 Series I Convertible Notes. Consequently, there are still 31,349,388,220 new shares available, 1,256,984,672 Series G Convertible Notes, 735,864,454 Series H Convertible Notes and 6,863,343,512 Series I Convertible Notes (the “Remainder”).
"This has been another positive week for LATAM. The exit financing was secured, the preemptive rights period for shareholders ended and we are close to exiting the Chapter 11 process. We have met the deadlines and objectives we set for ourselves and we are confident that we will emerge stronger from this challenging period," said Roberto Alvo, CEO of LATAM.
LATAM expects to exit the Chapter 11 Proceeding with US$2.2 billion of liquidity and a debt reduction of approximately 35% compared to the debt it had pending before entering said process.
ABOUT LATAM AIRLINES GROUP S.A.
LATAM Airlines Group S.A. is the leading airline group in Latin America, with presence in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, as well as international operations within Latin America and to Europe, the United States and the Caribbean.
The Group has a fleet of Boeing 767, 777, 787, Airbus A321, A320, A320neo and A319 aircraft.
LATAM Cargo Chile, LATAM Cargo Colombia and LATAM Cargo Brazil are the group’s cargo subsidiaries, having a combined fleet of 16 freighter aircraft, which will gradually increase to a total of 21 cargo aircraft by 2023. These cargo subsidiaries have access to the group's passenger aircraft, and operate within the LATAM group network as well as on exclusive international routes for cargo transportation. In addition, they offer a modern infrastructure and a wide variety of services and care options to meet the needs of their customers.