LATAM Airlines secures additional USD 1.3bn in bankruptcy financing proposal

Reuters has reported LATAM Airlines, a Latin American airline group, has announced it has secured an additional USD 1.3 billion for its financing proposal before a New York bankruptcy court, the news source said.

LATAM is also adding its unit in Brazil to the debt restructuring process.

LATAM filed for US bankruptcy protection in May, aiming to reorder USD 18 billion in debt. It was the world´s largest airline to date to seek an emergency reorganization due to the coronavirus pandemic.

Additional funding was secured from Oaktree Capital Management L.P. and its affiliates, to meet the company´s financing requirements amid the COVID-19 crisis. The company had already secured USD 900 million for the process from shareholders Cueto Group and Qatar Airways.

The company said the proposal still required approval from the US court. LATAM also announced it would add its unit in Brazil to the bankruptcy protection process in the United States.

The airline´s affiliates in Chile, Colombia, Peru, Ecuador and the United States joined the Chapter 11 process following the company´s initial bankruptcy announcement May.