LATAM recordsdata for chapter in wake of Covid-19 outbreak | Information

LATAM Airways Group has sought chapter 11 chapter safety in america as the corporate seeks to reorganise within the wake of the Covid-19 outbreak.

Associates in Chile, Peru, Colombia and Ecuador are all concerned within the transfer.

Colombian provider Avianca took an analogous step earlier this month.

“LATAM entered the Covid-19 pandemic as a wholesome and worthwhile airline group, but distinctive circumstances have led to a collapse in international demand and has not solely introduced aviation to a digital standstill, nevertheless it has additionally modified the trade for the foreseeable future,” stated Roberto Alvo, chief government of LATAM.

“We now have carried out a collection of adverse measures to mitigate the impression of this unprecedented trade disruption, however finally this path represents the most suitable choice to put the proper basis for the way forward for our airline group.

“We’re waiting for a post-Covid-19 future and are centered on reworking our group to adapt to a brand new and evolving method of flying, with the well being and security of our passengers and staff being paramount.”

LATAM laid off 1,800 staff out of over 40,000 within the lead-up to its chapter submitting.

The group stated it had secured the monetary help of shareholders, together with the Cueto and Amaro households, and Qatar Airways, to supply as much as $900 million in debtor-in-possession financing.

As well as, as of the submitting for voluntary safety, the group had roughly US$$1.three billion in money readily available.

The chapter 11 monetary reorganisation course of is a authorized framework underneath which LATAM, and its associates, can have the chance to resize operations to the brand new demand atmosphere.

LATAM stated it was additionally in discussions with the governments of Chile, Brazil, Colombia and Peru to help in sourcing further financing, defend jobs the place attainable and minimise disruption to its operations.

“Confronted with the most important disaster within the historical past of aviation, the Board has accepted this path ahead having analysed all of the obtainable alternate options to make sure the sustainability of the group.

“As now we have tailored to new realities up to now, we’re assured that LATAM will be capable of succeed within the post-Covid-19 context and proceed to serve Latin America, connecting the area with the world,” stated Ignacio Cueto, chairman of LATAM board of administrators.

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