Latam Airlines files for bankruptcy

Latam Airlines (NYSE:LTM), the biggest air carrier in Latin America, has filed for bankruptcy.

The airline group initiated a voluntary restructuring under Chapter 11 protection in New York, with the support of the Cueto and Amaro families and Qatar Airways, two of its largest shareholders.

Latam and affiliates will continue flying as conditions permit throughout the process, it says.

It entered the pandemic healthy and profitable, says CEO Robert Alvo, “yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future.”

The Cuero/Amaro families and Qatar Airways will provide up to $900M in debtor-in-possession financing; the company had approximately $1.3B in cash on hand at the time of the filing.


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