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In a statement from the airline, Roberto Alvo, thanked the trust and interest in the company.
The approval of the DIP financing of Latam Airlines was celebrated this Friday by the CEO of the company, Roberto Alvo, who considered that it is “a very significant step for the sustainability of the group.”
Through a statement, The executive thanked “the broad interest and trust in what Latam has built and in our long-term project“And he indicated that” we are now entering a new stage which is to present our reorganization plan within the Chapter 11 process. “
And it is that, once the DIP financing is approved -for US $ 2.45 billion-, the negotiation of the restructuring plan itself and the parallel verification of the credits begins, which is already a more administrative matter and that allows the Creditors file their claims with the Court.
The steps to follow
As expert lawyers in restructuring have explained to this medium, this is a long period, of “a few months”, and that – as requested by the debtor party – could take until March of next year when the deadline for filing such a plan.
It will be a period of questioning, of objections to payments and that could generate, according to the experts, movement in Chile and outside the country. “It is the most critical moment of the discussion. If the company has done its job well in this period, there will be an understanding and there should not be so many objections,” said one of the sources.
After submitting the text, you have access to the disclosure statement; a document that summarizes the plan in sufficient detail for an investor to make decisions. And, once approved, Latam is given the green light to request the creditors’ vote, which would take place in May 2021.
Latam’s teachings
For Andrés Mena, partner at Paul Hastings LLP, The process that the Chilean airline has advanced is leaving a great lesson for experts in these types of cases.
“What the airline did was use a strategy with quite a lot of risks, but that could conceivably have worked. A federal judge told them, yes, that it does not work. And, although it has not worked for Latam in particular, did us the tremendous favor of making the rules of the game even clearer at the point of restructuring plans. It is a very valuable precedent for this class of cases, which, without a doubt, will influence what happens in other cases, including airlines “, noted the expert in conversation with DF after the opinion of this Friday.
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