LATAM initiates final phase of reorganization process following registration of shares and convertible bonds with the CMF
Santiago, September 5, 2022 - LATAM Group today began the final phase of its reorganization under Chapter 11 in the United States. By filing an essential fact with the Financial Market Commission (CMF) in Chile, the Group disclosed that it has registered 605,801,285,307 LATAM shares in the Securities Registry of the CMF, corresponding to the capital increase and the three classes of convertible bonds that were approved at the Extraordinary Shareholders' Meeting in July.
“With the registration by the CMF of the instruments approved in the restructuring plan, we are now taking the final step in our Chapter 11 process, with a view to emerge no later thanNovember, well positioned for the future. We value the trust and continued support of our shareholders and other stakeholders and we look forward to a successful conclusion of the preemptive subscription period”, said the CEO of LATAM, Roberto Alvo.
Of the 605,801,285,307 registered shares, 531,991,409,513 will be destined to respond to the conversion of the convertible bonds and the remaining 73,809,875,794 shares will be offered preferentially to the shareholders. The unplaced balance, among shareholders and/or third parties, will be offered under the terms approved at the Extraordinary Shareholders' Meeting. With these instruments, alongside its exit financing, the group expects to raise approximately US $8 billion.
The placement price of the aforementioned 73,809,875,794 new paid-in shares was set at US $0.01083865799. The subscription value of the convertible bonds will be US $1 per bond.
In addition, the statutory 30-day pre-emptive option period for the new payment shares and convertible bonds will run from September 13, 2022 to October 12, 2022.
LATAM voluntarily initiated a reorganization process in the United States in May 2020.
This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America. This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the u.s. securities act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.