LATAM's bankruptcy filing to delay its Brazil bailout to at least July: sources

LATAM Airlines Group’s US bankruptcy filing this week will delay its potential bailout in Brazil to at least July and also push back aid to its rivals at least through the end of June, two sources said Thursday. The delays will add further strain to Brazil’s airlines, which were already in weak shape before the pandemic. Rivals Azul and Gol Linhas Aereas Inteligentes are also negotiating bailouts. “The bailout will happen; what could happen is that it may be staggered due to LATAM’s situation,” said one source. Neither LATAM nor Brazil’s state development bank, BNDES, which is coordinating the bailout, had an immediate comment. LATAM’s bankruptcy filing this week has caused private banks to worry about the viability of Brazil’s airlines after the pandemic, the sources said. LATAM’s Brazil subsidiary is not part of the US bankruptcy, although executives acknowledge it is possible it might also go through a court restructuring. Government and private banks are also worried layoffs will be unavoidable, which could have negative political implications, the sources said.<br/>