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LatinNews Daily - 27 May 2020

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In brief: Chile ponders bailing out ‘multilatina’ airline

* Chile’s finance ministry has said that President Sebastián Piñera’s government will consider if and how it can contribute to the “success” of the reorganisation process of Latam Airlines Group, after the Chile-based airline filed for Chapter 11 bankruptcy in the US yesterday (26 May). Latam has become the largest airline to have filed for bankruptcy protection as a result of the decline in activity due to the coronavirus (Covid-19) pandemic, citing “the biggest crisis in the history of aviation”. In a statement, the airline notes that the parent company and its affiliates in Chile, Peru, Ecuador, Colombia and the US are affected by the “voluntary reorganisation and restructuring of their debt”, but not Latam affiliates in Argentina, Brazil, and Paraguay. The company adds that it is in discussion with the governments of Brazil, Chile, Colombia, and Peru over possible bailouts. Chile’s finance ministry has noted that Latam is a “strategic company” for the country, generating 10,000 direct jobs as well as 200,000 indirect jobs in Chile (the latter through some 2,000 providers which are primarily SMEs).