CEO of Latam and future of the company after approval of financing: “It is insured (…) with these funds we can plan calmly”

On September 18, the US Bankruptcy Court approved the DIP (Debtor In Posession) financing of Latam Airlines for US $ 2.45 billion and the company’s reorganization process continues.

In conversation with the CNN program “Economic Agenda”, the CEO of the company Roberto Alvo referred to the future of the company and affirmed that after the approval of the DIP “it is insured, to the extent that we do not know that the pandemic. But we are very calm, with these funds we can plan calmly and accompany the growth of the offer to the extent that people want to fly again ”.

Along these lines, Alvo pointed out that “I have no doubt that the decision to file for Chapter 11 was the correct one. Now we have US $ 2.45 billion of DIP, that gives Latam total sustainability and allows us to face whatever comes forward, with still much uncertainty, but with great tranquility ”.

The general manager of the airline explained that the most difficult part of the process was the delay in the approval of the financing plan. “The most difficult thing was the wait, the 42 days that passed between the hearing and the final decision of the judge. Time was running out and we were uncertain that because the judge was taking so long, “he said.

With regard to the possibility of state aid for Latam, which finally did not materialize, Alvo said that “each society defines how it wants to help or does not want to help, in the US and in Europe the governments helped the airlines. In general in Latin America they have not done it and it seems valid to me. At the end of the day the priorities are different and if the companies decide not to help this sector and if to help this other, it is within the rules of the game ”.

The executive added that “we had conversations with all the governments, we even continued talking on other levels, and I think there was a real willingness to help. When we accepted Chapter 11 there was a very great interest from the market, practically immediate, and that allowed us to calmly tell the Government of Chile itself, we did it with the Government of Colombia as well, thank you very much for having attended us and for having worked with us in this, today the company believes that it can leave without their support ”.

Finally, Alvo explained that in September they have managed to reach a little less than 20% of normal operation and that they are seeing some recovery in some countries that are already beginning to open their external and internal borders such as Colombia and Peru. In this way, the CEO of the company believes that it is reasonable to think that by the end of the year they could reach between 40% or 50% of normal operation.