LATAM secures key funding commitment as Brazilian unit joins Chapter 11 filing

LATAM Airlines Brazil has joined other parts of the airline group in entering Chapter 11 bankruptcy protection as it took a further step to securing required financing to complete its restructuring. LATAM Airlines Group Thursday unveiled a key funding commitment from Oaktree Capital Management and its affiliates, covering a second tranche of financing for its restructuring. South American operator LATAM Airlines Group and its affiliates in Chile, Peru, Colombia, Ecuador and the USA filed for US Chapter 11 creditor protection on 26 May. But the Brazilian unit was not among those included in the original filing. ”LATAM Airlines Brazil today began a voluntary reorganisation process as part of Chapter 11 protection in the USA to restructure its debt and effectively manage its aircraft fleet, while enabling operational continuity,” the company says. ”LATAM Airlines Brazil’s decision is a natural step in light of the continuing Covid-19 pandemic and offers the best option to access the proposed debtor-in-possession financing that will provide the tools to adapt to this new reality.” The Brazilian unit will continue to operate flights normally during the process. LATAM Airlines Group has now presented the second tranche of its debtor-in-possession financing proposal for approval to a New York court. The tranche covers $1.3b that was committed by Oaktree Capital Management and its affiliates.<br/>