LATAM Airlines files for U.S. chapter 11 bankruptcy
LATAM Airlines Group SA said in a statement early Tuesday the firm and its affiliates in in the U.S., Chile, Peru, Colombia and Ecuador have filed for Chapter 11 bankruptcy protection in the U.S.
Why it matters: LATAM is Latin America's largest airline and its shareholders include Delta Air Lines. CEO Roberto Alvo noted in the statement the coronavirus pandemic has had a huge impact on the airline industry.
- "LATAM entered the COVID-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future," Alvo said.
The big picture: The Chapter 11 filing would enable the Chilean carrier to continue operations on a reduced schedule as it looks to restructure and pay creditors.
- The group said in the statement it has secured financial support from shareholders including Chile's Cueto family and Qatar Airways of up to $900 million in debtor-in-possession financing.
- LATAM has about $1.3 billion in cash on hand, the statement added.
Editor's note: This article has been updated with new details throughout.