LATAM Airlines requested the third postponement of the date of submission of its reorganization plan aimed at getting it out of bankruptcy established in a court in New York in the US last year.
Previously scheduled for September 15th, now the deadline should be changed to October 15th. Approval of the plan was moved from November 8th to December 15th. Originally, the plan was supposed to be presented on January 29, but LATAM ended up asking for more time to negotiate with its creditors.
The deadlines serve as a protection so that the airline can reach an agreement capable of being accepted and thus avoid external offers, such as the one intended by rival Azul. If creditors are not satisfied with the terms of LATAM’s proposal, they can present alternative plans.
Despite this, the Chilean company said it was in a positive position to exit Chapter 11 after revealing as of July 31 it had $1.1 billion in cash in addition to the $800 million available from a loan made by the partners.
LATAM also said it had received several proposals from groups interested in financing its recovery after sharing its perspectives for the coming years, with volumes in excess of $5 billion each. The airline expects to recover profitability to 2019 levels by 2026.
The optimism comes from the growth of domestic demand in most of the markets in which it operates, including Brazil. Only the international network, which was one of the company’s strengths, remains well below pre-pandemic levels, due to travel restrictions.
The company also revealed that it saved about $900 million a year, thanks to digital transformation, renegotiation with suppliers and fleet restructuring.
“Despite the dramatic crisis we have faced, we have taken full advantage of our restructuring, not only by becoming substantially more efficient, but also by cementing a better value proposition for customers, all of which has been reaffirmed by the significant interest we have received in providing exit financing” said LATAM Airlines Group SA, CEO Roberto Alvo.