LATAM Statement Related to Material Facts Dated October 11, 2021
Santiago, Chile, October 11, 2021 - In a material fact sent today to the Commission for the Financial Market (Comisión para el Mercado Financiero, CMF), the LATAM group made public one of the non-binding financing proposals received within the context of its reorganization proceeding under Chapter 11 of the United States Bankruptcy Code and negotiation of its reorganization and financing plan, in addition to the document “LATAM’s Preliminary Issues List”.
The proposal was presented by an ad-hoc group of creditors represented by Moelis & Company and White & Case LLP, and was made public after the end of the confidentiality period agreed upon between LATAM and the proponents. In the document, “LATAM’s Preliminary Issues List”, the group expressed certain concerns which demonstrate that LATAM's focus is on ensuring an appropriate amount of leverage and liquidity upon exit of the Chapter 11 Proceeding and throughout the business plan period, as well as compliance with all applicable laws including Chilean law, in the implementation of the plan.
LATAM has also received other proposals and continues to negotiate with all interested parties in order to agree on the terms of a reorganization and financing plan that will allow it to successfully emerge from its reorganization procedure under Chapter 11 in compliance with all applicable laws both in the United States and in Chile. Furthermore, LATAM contemplates summoning its shareholders to an extraordinary shareholders' meeting when appropriate subject to the progress of the ongoing negotiations.
Currently LATAM has the exclusive right to present its reorganization plan through October 15, 2021, and the exclusive right to seek acceptance thereof through December 15, 2021. If necessary, LATAM will request a new extension of said periods of exclusivity, which will be duly requested to the Court and reported to the regulatory authority and the market.