LATAM Airlines has obtained $ 1.3 billion from the American investment fund Oaktree Capital Management to get out of the coronavirus crisis, without resorting to any public aid.
« Today, LATAM Group has taken a big step towards ensuring its operational continuity, » said Roberto Alvo, CEO of the company yesterday. The investment is set to be reviewed and approved by a New York court in the coming days. In the event of green light, LATAM « hopes that it will not be necessary to appeal for financial support from governments. »
This $ 1.3 billion investment will add to the $ 900 million already on the table by Qatar Airways shareholders as well as the historical owners, the Cueto and Amaro families. At the end of May, LATAM declared bankruptcy in the United States by appealing to Chapter 11 of the United States bankruptcy law, a device that allows a company that can no longer repay its debt. restructure without creditors. The South American airline group has joined its Brazilian subsidiary in the proceedings. Subsidiaries in Chile, Colombia, Ecuador, the United States, and Peru had already been included.
“LATAM will continue to fly. There will be no impact on freight operations, reservations, vouchers ’or Latam Pass miles and points,” the South American company reassured in a statement. Before the pandemic, LATAM, born from the merger of the Chilean company LAN and the Brazilian company TAM, served 145 destinations in 26 countries. It had more than 42,000 employees and operated 1,400 daily flights, carrying more than 74 million passengers per year.