A banner of Latam Airways is witnessed next to empty test-in counters in Brasilia Intercontinental Airport as air targeted visitors is afflicted by the outbreak of the coronavirus sickness (COVID-19), in Brasilia, Brazil May 28, 2020. REUTERS/Ueslei Marcelino

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Nov 27 (Reuters) – Chile’s LATAM Airlines Group SA (LTM.SN) mentioned on Friday it has filed a reorganization plan, proposing an $8.19 billion infusion of capital into the team, in a bid to exit its Chapter 11 bankruptcy.

The funding proposal will involve a blend of new equity, convertible notes and personal debt, the group reported in a statement, adding that it intends to start an $800 million fairness legal rights presenting to shareholders, on confirmation of the program.

“While our course of action is not however about, we have achieved a essential milestone in the route to a more robust financial long run,” reported Roberto Alvo, chief government of the most significant airline in Latin America.

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Just lately, LATAM said it acquired a number of features to fund the exit from Chapter 11 individual bankruptcy, every single of which are well worth more than $5 billion. The team filed for Chapter 11 personal bankruptcy safety in New York in May well 2020 as globe travel came to a halt amid the COVID-19 pandemic. read through far more

On rising from Chapter 11, LATAM expects to have full personal debt of about $7.26 billion and liquidity of about $2.67 billion, the enterprise reported in the assertion.

The Santiago-primarily based company documented losses of some $692 million in the 3rd quarter, as the indebted corporation was nonetheless battling challenges from the pandemic. read additional

The restructuring program is accompanied by a assistance settlement with creditor team Parent Ad Hoc Group and some LATAM shareholders.

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Reporting by Maria Ponnezhath in Bengaluru Enhancing by Sam Holmes

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