Cargo operations continue as LATAM files for bankruptcy protection
SOUTH American operator LATAM Airlines Group, along with some of its affiliates, is filing for US Chapter 11 creditor protection in order to undertake a restructuring process
SOUTH American operator LATAM Airlines Group, along with some of its affiliates, is filing for US Chapter 11 creditor protection in order to undertake a restructuring process.
The voluntary filing has the support of key shareholders Cueto Group and Qatar Airways, which will provide up to US$900 million in debtor-in-possession financing, the company said.
While affiliates in Chile, Peru, Colombia, Ecuador and the US are included in the filing, those in Argentina, Brazil and Paraguay are not, reports London's Air Cargo News.
LATAM stated that it is aiming to 'transform its business' to maintain a 'leading position' in Latin American air transport during recovery from the coronavirus crisis.
It stressed that there will be 'no impact' on passenger and cargo operations.
'This re-organisation process provides LATAM with an opportunity to work with the group's creditors and other stakeholders to reduce its debt, access new sources of financing and continue operating,' it added.
LATAM and the affiliates will be able to 're-size' their operations, to match new levels of demand, and re-organise balance sheets to become 'more agile, resilient and sustainable'.
'This path represents the best option to lay the right foundation for the future of our airline group,' said chief executive Roberto Alvo, pointing out that LATAM was 'healthy and profitable' before the crisis caused a collapse in the air transport sector.