HomeBlogNationalLatam receives financing proposals for more than $5,000 million to emerge from the bankruptcy chapter

Latam receives financing proposals for more than $5,000 million to emerge from the bankruptcy chapter

  • September 15, 2021
  • Posted by: medium
  • Category: National
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In Ecuador they hope to reach about 100 % of the 2019 operation in the coming months.

More than $ 5,000 million in financing offers has received the LATAM group within the framework of the Departure Plan 11 of the United States Bankruptcy Law.

The airline, to which Latam Ecuador belongs, was hosted last year to that chapter due to the complex economic situation generated by the Covid-19 pandemic.

Roberto Alvo, CEO of the LATAM Group, explained Friday that the financing proposals they have received are as a whole, in large part, of the creditors and the main shareholders of the company, which seek that the airline can leave that chapter.

"We are evaluating those proposals (financing)," said the executive at a press conference.

To get out of chapter 11, the company must cancel the DIP (debtor in possession). Therefore, part of what you get from the more than $ 5,000 million will be to cancel the DIP and another part will serve to develop the business.

This company presented this week a five -year business plan along with various advances related to its departure financing process.

Alvo did not specify when Latam could leave chapter 11, because there are steps ahead. However, he said that in practice they would be in the last stage.

During the pandemic, Latam reduced its operation by up to 95 % and concluded 2020 with a drop in its operational income to 58.4 % and a net loss of $ 4,545.9 million.

Latam projects, at 2024, a profitability recovery at the 2019 levels, and an increase in the operational result of 78 % to 2026, compared to the prepaandia period.

"In Ecuador we hope to reach about 100 % of our 2019 operation in the coming months," said Alvo, who added that in the last seven weeks the domestic offer in Ecuador increased.

The future of the company does not point to a low -cost model. Alvo said that the airline is not a low cost From the perspective of the product they offer, but the efficiencies they have achieved within the restructuring process allow the cost to be competitive. “At the end of the day, what we offer to the passenger is to decide how they want to travel. We are not a low cost”He said.