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Latam finalises financial restructure

The South American Latam airline group has completed US financial restructuring after entering Chapter 11 bankruptcy protection in 2020.

The carrier has emerged from the process with more than $2.2 billion of liquidity, about $3.6 billion less debt on its balance sheet – equivalent to a 35% debt reduction from the pre-filing period – and the support of key existing and new shareholders.

Latam is now poised to reaffirm its leadership in Latin America and has positioned itself for long-term sustainability.

An extraordinary shareholders’ meeting will be held to renew the group’s board of directors on November 15.

The group recently implemented a joint venture with Delta Air Lines and agreed to acquire 87 Airbus A320neo aircraft by 2029.

Chief executive Roberto Alvo said: “We are pleased that we have completed a significant transformation and emerged from our financial restructuring process with a strengthened financial position and a renewed commitment to operational excellence. 

“As a group with a dynamic team of 30,000 employees and an unrivalled connectivity network, we look forward to continuing to offer passengers the best alternative for travel to, from, and within South America and to contribute in the broader sense to the various countries in which we operate and their diverse interests.”

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