LATAM is presented with improved financing proposals for Tranche C
LATAM Airlines Group has been offered access to more favorable conditions of its debtor-in-possession (DIP) financing with two new proposals for Tranche C. An offer was presented by the investment bank Jefferies Group LLC, in addition to an updated proposal from existing shareholders, Qatar Airways and the Cueto and Amaro families, which include new conditions that will be considered by Judge James Garrity of the Court of the Southern District of New York to decide how this DIP tranche will be financed.
The first financing proposal for Tranche C was presented on May 26, 2020, when LATAM Airlines Group and its affiliates in Chile, Colombia, Ecuador and Peru filed for Chapter 11, a voluntary reorganization process in the United States. At that time, Qatar Airways committed US$600 million and Costa Verde Aeronáutica (on behalf of the Cueto and Amaro families) committed US$300 million, of which US$50 million could be taken on by an Eblen family company. In the latest Tranche C financing proposal to LATAM, this has been made effective. Tranche C also includes the option for other shareholders in Chile to subscribe for up to US$250 million in additional financing.