LATAM Airlines Group shareholders have approved the airline group’s reorganisation plan paving the way for it to exit US Chapter 11 bankruptcy protection during the last quarter of 2022, the company announced.
At an extraordinary meeting on July 5, an overwhelming majority of 99.82% of attending shareholders approved the new capital structure, representing 82.17% of the total of issued shares with voting rights into which LATAM’s capital is divided. This will allow the group to implement the restructuring plan in the coming months, the company said in a statement.
“With the approval of our shareholders, we have taken a major step in our reorganisation process. The plan was already confirmed by the [New York Bankruptcy Court] judge last month, had the support of over 90% of our creditors, and today was approved by 82% of the total shares. This broad support demonstrates the strength of the presented plan and the degree of confidence in the future of the Group”, commented Group Chief Executive Officer Roberto Alvo.
The shareholders agreed to the restructuring plan, which includes the issuance of three classes of convertible bonds and a capital increase of about USD10.3 billion. This increase will be implemented through the issuance of USD800 million worth of new shares and USD9.5 billion worth of shares intended to support the conversion of the aforementioned convertible bonds into LATAM shares.
The US Bankruptcy Court approved LATAM’s Chapter 11 exit plan on June 18, 2022.
