By Fabian Cambero
SANTIAGO, June 9 (Reuters) – LATAM Airways Group LTM.SN, the area’s largest provider, stated on Wednesday that it had sought to increase till September the deadline to current its restructuring plan as a part of the chapter safety course of initiated in 2020.
LATAM filed for chapter safety in the USA in Could of final yr, hammered by the world journey disaster generated by the coronavirus pandemic. On the time, it was the world’s largest airline to take such motion because of COVID-19.
A choose had beforehand ordered the corporate ship its restructuring plan by the top of June, and the corporate has stated it hopes to wrap up the method in 2021.
“The extension request is a typical various contemplated inside the course of and doesn’t modify the intention of the LATAM group to exit Chapter 11 by the top of this yr,” the agency stated in an announcement.
Latam additionally instructed Chilean securities regulators it has requested a second disbursement for $500 million below the DIP Credit score Settlement (Debtor-In-Possession). The airline stated the extra funds had been essential given “the extension of the well being and mobility restrictions imposed by the authorities within the completely different international locations in that the Firm operates, in addition to the evaluation of the Firm’s liquidity projection “.
The corporate additionally obtained a $1.15 billion debtor-in-possession mortgage in October final yr.
Earlier on Wednesday Latam stated it expects to ramp up its June operations to 36% of their pre-coronavirus pandemic ranges, bolstered by the quickening tempo of vaccination in some international locations within the area.
“All markets present projections greater than these of the earlier month,” the corporate stated within the assertion.
LATAM, headquartered in Santiago, additionally operates in Brazil, Chile, Colombia, Ecuador and Peru, in addition to worldwide operations all through Latin America, Europe, the USA and the Caribbean.
(Reporting by Fabian Cambero, writing by Dave Sherwood Modifying by Marguerita Choy)
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