LATAM Airlines Group S.A. today received approval from the Court of the Southern District of New York for the modified debtor-in-possession (DIP) financing proposal that was filed on September 17, 2020. Judge James Garrity Jr’s decision will enable the group to access the US$2.45 billion required to tackle the impact of COVID-19.
“The approval of the DIP is a very important step for the sustainability of the group and we appreciate the wide interest and the confidence in what LATAM has built and our long-term project. Now we begin a new phase, working towards the presentation of our reorganization plan as part of the Chapter 11 process,” said Roberto Alvo, CEO of LATAM Airlines Group.
On May 26, 2020, LATAM Airlines Group and its affiliates in Chile, Colombia, Ecuador, the United States and Peru initiated a voluntary reorganization process under Chapter 11 protection in the United States, due to the impact of the COVID-19 pandemic. In July, LATAM’s Brazilian affiliate also filed for Chapter 11.